Sisters of Charity Hospitals Receives 'A' Rating from Fitch Ratings

Sisters of Charity Providence Hospitals recently received an ‘A’ rating from Fitch Ratings and a rating outlook of stable. The affirmation of the 'A' rating reflects support of a guarantee provided by Sisters of Charity Health System in Cleveland, Ohio, the sponsor of Providence Hospitals, as well as Providence's leading market position for cardiac care in its service area and improving financial operations.

Fitch found that Sisters of Charity Health System maintains a strong liquidity position and that Providence Hospitals has benefited from its long-standing reputation for cardiac care as evidenced by a leading market share in cardiac surgery of approximately 65 percent and in cardiac catheterization procedures of approximately 55 percent.

Operationally, Providence Hospitals' profitability improved substantially since 2005, with continued improvement in operations from 2006 through September 30, 2007.

The Stable Rating Outlook reflects the strength of Sisters of Charity Health System's balance sheet, as well as Fitch's expectations that operations at Providence Hospitals will continue to generate positive operating cash flow. Providence Hospitals had total operating revenues of approximately $264 million in fiscal 2006.

Sisters of Charity Health System is headquartered in Cleveland, OH, and provides acute hospital care, elderly care, and other charitable services. It has total assets of $730 million as of December 31, 2006.

Fitch Ratings is a leading global rating agency committed to providing the world's credit markets with independent, timely and prospective credit opinions. Fitch's rating definitions and the terms of use of such ratings are available on the agency's public Web site at www.fitchratings.com.

Sisters of Charity Providence Hospitals is known statewide for its compassionate care. The non-profit organization is licensed for 304 beds and is comprised of four entities: Providence Hospital, Providence Heart & Vascular Institute, Providence Hospital Northeast and Providence Orthopaedic & Neuro Spine Institute. A faith-based health care facility in the Midlands area of South Carolina, Providence employs more than 1,600 caring individuals.

Providence Hospital, located in downtown Columbia, was founded by the Sisters of Charity of Saint Augustine in 1938. The facility is best known for the expertise in cardiac care it provides through Providence Heart & Vascular Institute, which is recognized statewide as a referral center for the prevention, diagnosis and treatment of cardiovascular disease.

Providence Hospital Northeast was established in 1999 and offers a range of medical services in surgery, emergency care, women’s and children’s services and rehabilitation. Providence Northeast is home to Providence Orthopaedic & Neuro Spine Institute, which provides medical and surgical treatment of diseases and injuries of the bones, joints and spine.