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LUTHERAN HEALTH CARE ASSOCIATION $22 MILLION BONDS RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --

LUTHERAN HEALTH CARE ASSOCIATION $22 MILLION BONDS RATED 'A' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Feb. 20 /PRNewswire/ -- The Industrial Development Authority of the county of St. Louis' $22 million health facilities revenue bonds, Series 1992A issued on behalf of Lutheran Health Care Association (LHCA), a not-for-profit corporation, are rated 'A' by Fitch. The credit trend is stable.
 The rating reflects LHCA's established West St. Louis and Webster Groves community ties. Bond proceeds will be used to construct additional facilities to an existing continuing care retirement community (CCRC) owned and operated by LHCA. Demand for the existing and additional units is amply demonstrated with high occupancy rates and low penetration rates. The financial forecast indicates a moderate debt load, with debt service coverage ratios reaching over 2 times by 1996.
 Concerns include the presence of many other retirement living options in the primary service area. The potential long-term care medical insurance liability risk, associated with CCRCs in general, is limited to 15 days of nursing services at no extra cost.
 In the event LHCA is unable to make its payments when due, the Lutheran Charities Foundation of St. Louis (an affiliate of LHCA), will make payments to the bond trustee. The foundation had cash and investments with a market value of approximately $55 million ($49 million cost) as of December 1991. This extra support and enhancement added strength to the underlying investment grade attributes of LHCA and was instrumental in rendering the 'A' rating.
 -0- 2/20/92
 /CONTACT: Edward C. Merrigan of Fitch, 212-908-0513/ CO: Lutheran Health Care Association ST: Missouri IN: HEA SU: RTG SM -- NY075 -- 1026 02/20/92 14:51 EST
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Publication:PR Newswire
Date:Feb 20, 1992
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