Fitch Ratings: Nonrated Descriptive Report on Marsh's Edge, GA.

TAMPA, Fla. -- On July 22, 2004, Fitch Ratings released its nonrated descriptive report on the approximately $63.03 million Brunswick and Glynn County Development Authority (Marsh's Edge Project), GA series 2004A through series 2004C. 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. The bonds are expected to be priced the week of Aug. 9 by Herbert J. Sims & Co., Inc.

Coastal Community Retirement Corporation will use the proceeds of the 2004 A, B, and C bonds and the proceeds of a $43,000,000 construction loan provided by BNP Paribas, New York Branch, as agent, for the purposes of constructing a start-up continuing care retirement community to be known as Marsh's Edge in St. Simon's Island, Georgia. The primary strengths of the project include sound presales of 70%, favorable demand characteristics, and the lack of competition in this generally very affluent market. In addition, Fitch notes the development experience of Co-operative Retirement Services of America (CRSA) and the construction experience of Weitz Construction as a main credit strength. The service area demographics of St. Simon's Island and Sea Island are favorable as evidenced by above-average home values, high percentage of 65 and older population, and strong wealth indicators. Also, the land on which the project will be built, approximately 74 acres, was donated by the Sea Island Company, the major landowner and developer in the service area. However, Fitch notes that, despite the lack of competition in the market, penetration rates are average due to the relatively small population base of the primary service area.

Main credit concerns include the traditional risks associated with start-up projects such as construction and fill-up delays. Additional risks include the high debt burden (until the construction loan is paid off with entrance fees), the age of the presales (some presales date back to November 2001), and the fact that Marsh's Edge will be the first continuing care retirement community charging an entrance fee in the market. Fitch believes that education of the market to the CCRC product can potentially hinder unit sales as the consumers in the market may be unfamiliar with the product and its benefits.

Fitch believes that while start-up retirement communities do not possess the credit profile to be rated in the investment-grade category, the development and construction team assembled on Marsh's Edge, favorable market characteristics, and lack of competition should allow the project to succeed.

Located on St. Simon's Island, GA, Marsh's Edge is a start-up, type B continuing care retirement community that will consist of 110 independent living apartments, 30 independent living villas, 32 assisted-living units (including 12 dementia), and 20 skilled nursing beds.

For more information, see 'Marsh's Edge, St. Simon's Island, Georgia,' dated July 22, 2004 on Fitch's web site at 'www.fitchratings.com' or contact market services at 800-853-4824.