The 'A+' rating assigned to California Health Facility Finance Auhtority, issued for Sutter Health is based on Sutter's strong market position, stable financial performance, and solid balance sheet. Significant competition, and continued efforts to improve financial performance remain Sutter's key challenges. Approximately $40 million of bond proceeds will be used to reimburse Sutter for the purchase of Davies Medical Center in San Francisco and for capital improvements at California Pacific Medical Center. The remainder will be used to refund Sutter's outstanding series 1990 and 1989 bonds. The 'A+' public or underlying rating is also affirmed on approximately $424 million of existing series 1993, 1997, and 1998 debt. After very aggressive growth following the merger of Sutter and California Healthcare System
