Fitch: Non-Rated Descriptive Report on The Buckingham, Texas.

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 6, 2004

On Jan. 8, 2004, Fitch Ratings plans to release its non-rated descriptive report on the approximately $124.5 million City of Houston Health Facilities Development Corporation retirement facility revenue bonds (Buckingham Senior Living Community, Inc. Project), series 2004A through series 2004D.

Fitch's descriptive credit report provides analysis of significant credit factors and includes Fitch's evaluation of the strengths and risks surrounding this credit. No request was made for a rating on this transaction, and Fitch did not review all information or complete all procedures necessary to reach a final credit rating. Generally, Fitch regards unenhanced debt issued with financial characteristics similar to the described facility as being below investment grade.

Buckingham Senior Living Community, Inc. (BSLC) will use proceeds of the series 2004A-D bonds plus other available moneys for the purpose of constructing The Buckingham, a continuing care retirement community (CCRC), in Houston, Texas. BSLC received its 501(c)(3) determination letter from the Internal Revenue Service as of Dec. 18, 2003.

Primary credit strengths include Buckingham Senior Living Community, Inc. Project's (the project) strong presales and favorable demand indicators, as well as the experience of the developer and management company. The project's demand indicators are favorable, with a low penetration rate of 2.5% and saturation rate of 14%. Fitch believes The Buckingham will fill a need in the market area for a high-end retirement community that offers life care. The wealth levels of the initial depositors are high, with an average net asset value of $2.4 million and average annual income of $146,000. Pre-sales through Dec. 26, 2003 were strong, at 84%, signifying solid market interest. Fitch also views the experience of Greystone Communities (Greystone), the developer and management company, as favorable.

Main credit concerns include potential construction and fill-up delays, which are standard for start-up CCRCs. In addition, the project's projected financial indicators are weak, with unprofitable operations through the stabilization period and a high debt burden; however, the financial ratios demonstrated by the Buckingham are consistent with other start up CCRCs. Management forecasts stabilized occupancy of 95% by July 2007, after a 27-month fill-up period. Fitch believes the forecast financial results are achievable, and maximum annual debt service coverage (MADS) coverage is projected to be 1.35 times (x) in 2008.

Located in Houston, TX, The Buckingham is a start-up, Type A CCRC that will consist of 205 independent living apartments, 59 assisted living units (including 16 memory support units), and 60 skilled nursing beds.

A copy of the credit analysis will be available Jan. 8 on the Fitch Ratings web site at 'www.fitchratings.com'.