Fitch Revises Sarasota Cty Pub Hosp Dist, Florida VRDBs 2007B to 'AA-/F1+'

Business Wire, April 7, 2008

NEW YORK -- On the effective date of the proposed conversion of the $89,950,000 Sarasota County Public Hospital District variable rate demand revenue bonds (Sarasota Memorial Hospital Project), Series 2007B, from the current auction rate insured mode to a weekly variable rate mode. Fitch Ratings will downgrade the long-term 'AA' rating assigned to the bonds based on an AMBAC Assurance Corporation policy to 'AA-' and assign a short-term rating of 'F1 ' based on Fifth Third Bank. The revision of the rating for the series 2007B bonds is in connection with the addition of an irrevocable direct-pay letter of credit (LOC) issued by Fifth Third Bank, securing the bonds, which will become effective on the conversion date, April 9, 2008. The long-term 'AA-' rating of Fifth Third Bank is on Negative Watch as of March 7, 2008. The bonds will be subject to a mandatory tender on the conversion date. The remarketing agent for the bonds is Fifth Third Bank.

The LOC provides full coverage of principal plus an amount equal to 34 days of interest computed at a maximum rate of 10%, based on a year of 365 days, and purchase price for tendered bonds. The rating will expire on the earliest of: (i) April 1, 2011, the stated expiration date of the LOC, unless such date is automatically extended for additional one year periods; (ii) any prior termination of the LOC; or (iii) the defeasance of the bonds.

Upon the conversion dates, the bonds will bear interest in a weekly rate mode. Following conversion, the bonds may also be converted to a daily, flexible, or auction, interest rate mode in accordance with the terms of the documents. While bonds bear interest in the weekly rate mode, interest payments are paid on the first business day of each month, commencing May 1, 2008, and bondholders have the option to tender their bonds on any business day, with the requisite prior notice to the remarketing agent and the tender agent. The bonds are subject to mandatory tender on (1) conversion of the interest rate mode (except between daily and weekly rate mode), (2) on the business day immediately preceding the expiration or termination of the LOC, (3) on the substitution date, (4) on the business day immediately preceding the termination date of the letter of credit in the event following an event of default under the reimbursement agreement. Optional and mandatory redemption provisions also apply to the bonds.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.