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SOUTH FULTON MEDICAL CENTER (GA.) $39 MILLION BONDS 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Nov. 9 /PRNewswire/ -- The Tri-City Hospital Authority's $39.2 million revenue anticipation certificates series 1993, issued on behalf of the South Fulton Medical Center, Inc., are rated "BBB" by Fitch. The credit trend is stable. The bonds are expected to be sold during the week of Nov. 15, by Dean Witter Capital, Inc.
 Bond proceeds will be used by the South Fulton Medical Center, Inc. to purchase the hospital from the Tri-City Hospital Authority, pay off a bank note used to finance certain capital expenditures, fund a construction account, and fund a debt service reserve and related issuance costs. Tri-City Hospital Authority, in turn, will use proceeds from the sale of the hospital to advance refund its 1985 certificates.
 The "BBB" rating is supported by South Fulton's four-year history of debt service coverage exceeding 2.0x, profitable operations, and a manageable debt load. The new management team that has evolved over the past few years is viewed favorably.
 Concerns include portions of the service area that suffer from weak socioeconomic indicators, a payor mix that is slightly weighted towards governmental programs, and competitive threats from hospitals both within and outside the service area, primarily those from the northern sections of Fulton County.
 The obligated group includes: South Fulton Medical Center, Inc. an acute-care hospital operating 290 beds; South Atlanta Diagnostic Cardiology, a free-standing catheterization lab; a Medical Office Building organization; a foundation; and an entity involved with off- site primary care initiatives. All obligated group members are subsidiaries of the Georgia International Health Alliance. The obligated group activities are concentrated on a 25-acre campus in East Point, Ga., bordering the southern limits of Atlanta.
 -0- 11/9/93
 /CONTACT: Jerry Solomon of Fitch, 212-908-0557/


CO: South Fulton Medical Center, Inc.; Tri-City Hospital Authority ST: Georgia IN: HEA SU: RTG

MP -- NY076 -- 2248 11/09/93 12:48 EST
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Publication:PR Newswire
Date:Nov 9, 1993
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