SAN FRANCISCO – Fitch Ratings assigns an 'AA-' bank bond rating to the following California Health Facilities Financing Authority (CHFFA), CA revenue bonds: $40 million series 2010C variable-rate revenue bonds (Scripps Health).

The Rating Outlook is Stable.

RATING RATIONALE:
--Based on a review of the interest rates, cure periods and amortization schedules specified in the documents governing the bank bonds, it is Fitch's opinion that the incremental risk associated with a potential bank bond scenario does not have a material impact on Scripps Health's long-term credit rating. Under the term of the Letter of Credit (LOC) with Barclays Bank PLC, Scripps Health is required to amortize bank bond amounts over a three-year period beginning 367 days after the liquidity draw. Fitch believes that Scripps Health's strong and robust operating profile, coupled with solid liquidity, allows it to adequately meet the obligations set forth in the LOC document while maintaining its current rating level. Fitch notes that the bonds are not currently in the bank bond mode.

SECURITY:
The bonds are secured by a gross receivables pledge of Scripps Health.

Fitch was asked to assign bank bond ratings prospectively by Barclays Bank, PLC. The ratings correspond to the following CUSIP: 13033L FM4.

For more information on Scripps Health, see Fitch's Rating Action Commentary 'Fitch Upgrades Scripps Health, California to 'AA-'; Outlook to Stable', dated Dec. 21, 2009, at 'www.fitchratings.com'.

These rating actions reflect the application of Fitch's current criteria which are available at 'www.fitchratings.com' and specifically include the following reports:

• 'Revenue-Supported Rating Criteria,' dated Dec. 29, 2009;
• 'Nonprofit Hospitals and Health Systems Rating Criteria', dated Dec. 29, 2009.