The private placement of the Indiana Heart Center LLC's taxable auction-rate notes is based on a guaranty agreement executed by Ascension Health. The guaranty is secured on parity with Ascension Health's outstanding rated debt. The 'AA' rating reflects: The maintenance of a solid operating profile, highlighted by improved operations in each of the past two years, and continued improvement for the nine-month interim period ended March 31, 2002; Considerable geographic and financial dispersion among system members, as Ascension Health remains the largest non-governmental not-for-profit health system in the country; A solid balance sheet, reflecting moderate pro forma debt levels, light debt service as a percentage of revenue, and sizable unrestricted investments, which, though very large on an absolute basis, remain
