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STEERE HOUSE, RHODE ISLAND 'BBB' 1990 REVENUE BONDS AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --

STEERE HOUSE, RHODE ISLAND 'BBB' 1990 REVENUE BONDS AFFIRMED BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Nov. 20 /PRNewswire/ -- Rhode Island Health and Educational Building Corp.'s $6.2 million 1990 revenue bonds are affirmed at 'BBB' by Fitch. The bonds were issued to build a 120-bed replacement facility for Steere House.
 Construction of the new facility was completed ahead of schedule in February 1991, and the home is already operating at 96 percent occupancy. Demand is likely to remain strong given the continuing shortage of nursing home beds in Rhode Island, the attractiveness of the new facility, and its location on the campus of Rhode Island Hospital, a major tertiary-level teaching facility.
 Concerns about Steere House's heavy reliance on Medicaid, rising operating losses, and dependence on non-operating income to service debt continue to be tempered by the home's substantial financial reserves. In addition to a pledge of the home's gross revenues and a mortgage on the new building, the 1990 bonds are secured by $2.6 million of trustee- held funds. The funds provide a cushion of over four years' maximum annual debt service, or 40 percent of the original principal amount. Furthermore, the current market value of the home's professionally managed investment portfolio amounts to over $6 million, providing 452 days cash on hand. The credit trend is stable.
 -0- 11/20/91
 /CONTACT: Andy Matteis of Fitch, 212-908-0501/ CO: Rhode Island Health and Educational Building Corp. ST: Rhode Island IN: SU: RTG


JT -- NY051 -- 5424 11/20/91 12:32 EST
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Publication:PR Newswire
Date:Nov 20, 1991
Words:254
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