Standard&Poor's Ratings Services assigned its 'AA' long-term rating to a private placement of Tucson Heart Hospital-Carondelet LLC, Ariz.'s $41.0 million series 2006 taxable auction rate notes, 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 specifically reflects Ascension Health's: Second year of robust financial performance, highlighted by stable operating income, and improved net income and cash flow in fiscal 2006, producing consistently strong coverage of both senior debt service and total debt service; Continued improvement in liquidity and balance sheet metrics, such that the organization can manage the additional debt from this issue; and Excellent geographic and financial dispersion as the largest non-governmental,
