Fitch Releases Nonrated Descriptive Report on Edgewater, A Wesley Active Life Community (Iowa).

CHICAGO -- Today, Fitch Ratings plans to release its nonrated descriptive report on the approximately $88 million Iowa Finance Authority's series 2007 A through E bonds issued on behalf of Edgewater, A Wesley Active Life Community. 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 Nov. 29, 2007 by Ziegler Capital Markets.

The proceeds of the 2007 A through E series bonds, together with about $11 million of initial resident deposits, about $3.3 million anticipated earnings on trustee-held funds, a $1 million donor gift, and a $2 million subordinate loan plus a $1 million equity contribution from Wesley Retirement Services, Inc. (Wesley), will be used to construct a start-up continuing care retirement community (CCRC), to be known as Edgewater, in West Des Moines, IA.

Edgewater is a start-up, type B continuing care retirement community expected to consist of 137 independent living apartments, 14 residential independent living villa homes, 32 traditional assisted living units, 16 memory-support assisted living units, 40 private skilled nursing beds in a health center, and related common areas. Edgewater is an affiliate of Wesley, an Iowa nonprofit corporation, which currently owns and operates five CCRCs with more than 900 units in its continuum of care, making it the largest not-for-profit senior living provider in the state of Iowa. Additionally, Wesley will provide management services for Edgewater.

The primary strengths of the project include its favorable location, coverage of maximum annual debt service (MADS), the good presales and presale velocity with 73% of apartments reserved, and the sponsorship of Wesley, including its strong management practices. In addition, Fitch Ratings views the management and development experience of Greystone Communities and Greystone Development Company II, LP (Greystone) favorably.

Main credit concerns include the relatively low home values in relation to the weighted average entrance fees, traditional risks associated with start-up projects such as construction and fill-up delays, a less than favorable projected increase in the 75+ age cohort, and a heightened risk of a downturn in the local housing market due to the differential between housing values and entrance fees.

Fitch believes that start-up retirement communities do not possess the credit profile to be rated in the investment-grade category. The planned redemption of the $28.8 million series 2007E bonds and $1.05 million series 2007D bonds from initial entrance fees compared with the total size of the bond offering is in line with what Fitch typically sees in start-up financings.

For a copy of the credit analysis, see the Fitch web site at www.fitchratings.com or contact Market Services at [phone].

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.