2008-08-07 23:33:03 -

- Fitch Ratings assigns a rating of 'AA/F1+' to the $290,575,000 The Hospital Authority of Hall County and the City of Gainesville revenue anticipation certificates (Northeast Georgia Health System, Inc. Project), consisting of: $50,000,000 series 2008B; $50,000,000 series 2008C; $50,000,000 series 2008D; $50,000,000 series 2008E; $50,000,000 series 2008F; and $40,575,000 series 2008G. The long-term ratings assigned to the series 2008B-F

certificates are based jointly on The Northeast Georgia Health System, Inc. (the System, currently rated 'A' by Fitch) and the support provided by irrevocable, direct-pay letters of credit (LOC) issued by Landesbank Baden-Wurttemberg, (LBBW, currently rated 'A+/F1+' by Fitch), acting through its New York Branch, securing each series of certificates. The long-term rating assigned to the series 2008G certificates is based jointly on the system and the support provided by an irrevocable direct pay LOC issued by Bayerische Landesbank (BLB, currently rated 'A+/F1+' by Fitch), acting through its New York Branch, securing the certificates. The short-term 'F1+' rating assigned to each series of certificates is based solely on the LOC securing such series.

The long-term 'AA' rating is based on Fitch's methodology which considers the likelihood of the failure of both a rated obligor and a bank LOC provider. The methodology results in a rating that is up to two notches higher than the stronger of the two credits if the following conditions are met: (1) both entities have a rating of 'A' or higher; (2) the transaction is structured such that payments from both the obligor and the bank are in the flow of funds and both entities would have to fail to perform before the bonds defaulted; and (3) the credit of the bank and the rated obligor have no more than a medium degree of correlation. In this instance, Fitch has determined that there is a low degree of correlation between the System and the respective banks, which results in a long-term rating of 'AA'. If either the System or a bank were to be downgraded to below 'A', this methodology would no longer be applicable to the affected series of certificates and the long-term rating would then reflect the higher of the System's rating and the rating based on the LOC.

The banks are obligated to make payments of principal and interest when due as well as purchase price for tendered certificates during the weekly interest rate mode. The rating for any series of certificates will expire upon the earliest of: Aug. 13, 2011, the initial expiration date of each LOC, unless such date is extended; any prior termination of an LOC; or defeasance of the certificates. The LOCs provide full coverage of principal plus an amount equal to 42 days' interest at a maximum rate of 12% based on a 365-day year, and purchase price for tendered certificates. The remarketing agent for the certificates is Citigroup Global Markets, Inc. The certificates are expected to be available for delivery on or about Aug. 14, 2008.

Each series of certificates will initially bear interest in the weekly interest rate mode, but may be converted, by series, to a daily, bond interest term or long-term rate mode. While in the weekly mode, interest will be paid on the first Wednesday of each month, commencing Sept. 3, 2008. While the certificates are in the weekly rate mode, holders may tender certificates on any business day, with seven days prior notice. The certificates are subject to mandatory tender (i) on the day after the end of each bond interest term; (ii) on each interest rate conversion date; (iii) upon the expiration, termination or substitution of the LOC; and (iv) on the 10th day next succeeding receipt of notice of an event of default under the reimbursement agreement. Certificates are subject to immediate acceleration upon receipt by the trustee of a notice from a bank that the interest component of a LOC will not be reinstated following a drawing for interest. Optional and mandatory redemption provisions also apply to the certificates

Certificate proceeds will be used to refund outstanding revenue anticipation certificates of the Authority.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

Fitch Ratings, New York
Trudy Zibit, 212-908-0689
(for information on the certificates)
Alex Bumazhny, 212-908-0341
(for information on the Northeast Georgia Health System)
or
Media Relations:
Cindy Stoller, 212-908-0526