The rating actions on New Jersey Health Care Facility Finance Authority's bonds, issued for Union Hospital and Mega Care and Community Kimball Kensington Manor, reflect the formation of the St. Barnabas Health Care System obligated group. The system anticipates selling series 1998B and 1998C bonds ('A-' underlying rating) in early December 1998. At that time, the outstanding bond issues for Community and Union will become obligations under the system's new master trust indenture. Therefore, the rating on these obligations will be the rating of the larger system, of which both entities are a part. If the transaction does not occur as anticipated, Standard&Poor's will reevaluate these ratings. The outlook mirrors the outlook of St. Barnabas Health Care System.
