Fitch Ratings: Non-Rated Descriptive Report on The Marshes of Skidaway Island, GA.

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 1, 2003

Fitch Ratings has released its non-rated descriptive report on the approximately $97.5 million Savannah Economic Development Authority First Mortgage Revenue Bonds (The Marshes of Skidaway Island Project) Series 2003A through Series 2003E. 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.

Through the financing, The Marshes of Skidaway Island (The Marshes or the project), a non-profit, entrance fee continuing care retirement community (CCRC) will be constructed on Skidaway Island, GA. Primary credit strengths include the development site's favorable location, solid presales, and experience of the developer and management company. The project will be located on Skidaway Island, close to The Landings, which is a private residential community with approximately 7,000 residents that have an average age of 58 years. In addition, the market area has good demographic and socioeconomic characteristics with almost 28% of households qualifying in age and income for the project. The initial depositors for the project have an average net asset value of $2.6 million and average annual income of $167,000. Pre-sales through September 1, 2003 were strong at 79% signifying solid market interest. In addition, Fitch Ratings believes future sales will continue at a faster pace once construction begins.

Credit concerns are standard for a start-up CCRC and focus on potential construction and fill-up delays, as well as general uncertainties surrounding most start-up communities. Although the general economic malaise has not affected pre-sales, Fitch believes the slow down in the economy may affect fill up if current prospective resident homes are difficult to sell. Other concerns include The Marshes' relatively competitive market, with three rental retirement communities in the primary market area (PMA) and several stand alone assisted living facilities in the surrounding area. Management forecasts stabilized occupancy of 95% by March 2007 after a 24 month fill up period. Fitch believes the forecasted financial results are achievable and MADS coverage is projected to be 1.3x in 2008.

The Marshes of Skidaway Island is a start-up, Type B continuing care retirement community that will consist of 182 independent living units (127 apartments, 18 duplexes and 37 villas), 16 assisted living units, 12 dementia units, and 12 skilled nursing beds.

For a copy of the credit analysis, please visit Fitch's web site at 'www.fitchratings.com' or contact Market Services at 1-800-853-4824.