Fitch Rates Hospital Auth of Hall County & City of Gainesville (Georgia) Ctfs 2007 F&G 'AAA/F1+'.

NEW YORK -- Fitch Ratings has assigned a rating of 'AAA/F1+' to The Hospital Authority of Hall County and the City of Gainesville (GA), $150,000,000 Revenue Anticipation Certificates (Northeast Georgia Health System, Inc. Project), consisting of $45,000,000 series 2007F and $105,000,000 series 2007G (the Certificates). The long-term 'AAA' rating assigned to series 2007F is based on the support of a financial guaranty insurance policy provided by MBIA Insurance Corporation; the long-term 'AAA' rating assigned to series 2007G is based on the support of a financial guaranty insurance policy provided by Assured Guaranty Corp. Each of the policies insures scheduled payments of principal and interest on the respective series of Certificates.

The short-term 'F1+' rating on the certificates is based on the liquidity support of two separate standby bond purchase agreements (SBPAs) provided by Bayerische Landesbank, acting through its New York Branch. Each of the SBPAs provides for the payment of the principal component of purchase price and up to 35 days of interest calculated at a maximum rate of 12%, based on a 365-day year, while the certificates bear interest in the weekly rate mode. The SBPAs will expire on the earlier of: June 6, 2014, the expiration date, unless such date is extended, or upon the occurrence of certain events of termination in accordance with the terms of the SBPAs. The short-term rating assigned to the Certificates will expire upon the expiration or termination of the SBPAs. U.S. Bank, National Association, as tender agent and trustee, is required to give notice to the bank in the event that remarketing proceeds are insufficient to pay purchase price for tendered certificates. The remarketing agent is Citigroup Global Markets Inc. The certificates are expected to be delivered on or about June 6, 2007.

The certificates initially bear interest in the weekly rate mode, but may be converted to a daily, long-term, bond interest term or auction rate interest rate mode. While the certificates bear interest in the weekly rate mode, interest is payable on the first Wednesday of each month, or if such Wednesday is not a Business Day, on the next succeeding Business Day. The first interest payment date for the certificates is July 5, 2007. Holders of certificates bearing interest at a weekly rate mode may tender their certificates for purchase with seven days' prior notice. The certificates are subject to mandatory tender: (i) on each interest rate mode conversion date; (ii) on the first day following the last day of each bond interest term rate period; and (iii) upon the expiration, termination or replacement of the SBPA, including upon the occurrence of certain events of default under the SBPA.

Proceeds from the sale of the certificates will be used to finance the costs of certain additions and expansions to Northeast Georgia Medical Center. In addition, the proceeds from the sale of the series 2007G certificates will be used to refund all of the Authority's outstanding Revenue Anticipation certificates, Series 2001. For information on the underlying long-term rating assigned to these certificates, see Fitch's press release of May 16, 2007 titled 'Fitch Rates Northeast Georgia Health System 2007 Bonda 'A" at www.fitchratings.com.

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.