The long-term rating on California Health Facilities Finance Authority's bonds, issued for Adventist Health System West, is based on bond insurance provided by MBIA. The short-term rating is based on a liquidity facility provided by the California State Teachers' Retirement System to cover the purchase price of tendered bonds. The liquidity facility covers principal plus 35 days' interest at the maximum rate of 15% for the bonds. The facility expires on the anniversary date of the bond issuance in 2005 unless extended or earlier terminated according to its terms. Bond proceeds will be used by Adventist Health's obligated group to finance capital expenditures and refinance outstanding debt. The health system is headquartered in California and owns 16 hospitals and other
