The rating on North Carolina Medical Care Commission, N.C.'s bonds, issued for New Hanover Regional Medical Center reflects its: * Role as the dominant health system in Wilmington and southeastern North Carolina; * Historically good utilization and operating statistics; * Strategic management; and * Strong financial performance. Offsetting factors include a sizable increase in debt and satisfactory levels of liquidity. Proceeds will primarily finance the hospital's acquisition of Cape Fear Hospital, also in Wilmington, from Columbia/HCA Corp. in November 1998. The $98 million purchase price for this 141-bed acute care hospital represents approximately 9.5 times (x) Cape Fear's earnings before interest, taxes, depreciation, and amortization for the 11-months ending November 1998. Within its primary market, the medical center (without Cape
