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JOHN KNOX VILLAGE (MO) 1992 REVENUE BONDS RATED 'A-' BY FITCH -- FITCH FINANCIAL WIRE --

JOHN KNOX VILLAGE (MO) 1992 REVENUE BONDS RATED 'A-' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Aug. 26 /PRNewswire/ -- The Industrial Development Authority of the City of Lee's Summit, Missouri's $13.1 million health facilities refunding and improvement revenue bonds, series 1992, issued for John Knox Village, are rated 'A-' by Fitch. The credit trend is stable. Bond proceeds will be used primarily to refund outstanding long term debt, and also to fund a 30-bed expansion of the village's residential care facility. The issue is expected to be sold through negotiation by George K. Baum & Co. during the week of September 7.
 John Knox Village is a continuing care retirement community providing independent living facilities (1,673 units), residential care (assisted living; 60 units), and skilled nursing care (430 beds) to its resident population, which presently totals 2,050.
 John Knox Village has demonstrated strong historical pro forma maximum annual debt service (MADS) coverage levels. MADS coverage exceeded 3.0 times(x) in each of the last three years and was 4.0x in 1991. Excluding the cash flow benefit of apartment turnover, MADS coverage was 1.9x in 1992, which is excellent. Balance sheet strengths include a very low debt load and strong liquidity position. Days cash on hand is currently 104.
 While the village's overall financial position is strong, the nursing facility has experienced losses. This is a result of the significant number of residents maintaining life care contracts which provide for unlimited skilled nursing care without an increase in the monthly service fee. While this is a concern, the contracts have not been offered since 1980. As the number of residents maintaining this type of contract is reduced over time, the losses at the nursing facility should continue to decline.
 The relatively low occupancy rate of the independent living units is a concern which, along with the sheer size of the village and the annual apartment turnover, requires a significant ongoing marketing focus.
 -0- 8/26/92
 /CONTACT: Michele Cebron of Fitch, 212-908-0591/ CO: Industrial Development Authority of the City of Lee's Summit ST: Missouri IN: SU: RTG


DC -- NY077 -- 3635 08/26/92 16:41 EDT
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Publication:PR Newswire
Date:Aug 26, 1992
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