Health Facility Bonds Downgraded

Two series of Illinois Health Facilities Authority revenue bonds issued on behalf of Bethesda Home and Retirement Center have been downgraded from A-minus to BBB by Fitch Ratings.The affected securities are approximately $3.5 million of series 1999A revenue bonds and approximately $100,000 of series 1999B taxable revenue bonds, Fitch said. The rating outlook is Stable. The downgrades reflect the facility's "diminished profitability," its failure to meet the required debt service coverage set forth in its covenant, and concerns about future financial performance in view of its focus on nursing homes and recent declines in occupancy, the rating agency said. "The lack of investment income, as well as reduced census, negatively affected financial results in fiscal 2002 and reflect the volatility inherent in a small revenue base," Fitch said. The rating agency can be found online at http://www.fitchratings.com.