Fitch Rates University of Colorado Hospital Authority's $92MM Revs 'AA-/F1+'

Business Wire, June 20, 2008

NEW YORK -- Fitch Ratings assigns an 'AA-/F1 'rating to the University of Colorado Hospital Authority Revenue Bonds, $19,140,000 series 2008A and $73,500,000 series 2008B. The ratings are based on the support provided by separate direct-pay letters of credit (LOCs) issued by Wachovia Bank, National Association, securing each series of bonds. The bank is obligated to make payments of principal of and interest on the bonds upon maturity, acceleration and redemption, as well as purchase price for tendered bonds. The rating will expire upon the earliest of: (a) June 25, 2011, the initial stated expiration date of the LOCs, unless such date is extended; (b) any prior termination of the LOCs; (c) defeasance of the bonds. The LOCs provides full coverage of principal plus an amount equal to 55 days of interest at a maximum rate of 12% based on a year of 365 days and purchase price for tendered bonds, while in the weekly and daily rate modes. The Underwriter and Remarketing Agent for the bonds is Citigroup Global Markets. The bonds are expected to be delivered on or about June 26, 2008.

The bonds initially bear interest at a weekly rate, but may be converted to a daily, long term, indexed put rate, or bond interest term rate. While bonds bear interest in the weekly rate mode, interest payments are on the first Wednesday of each month, commencing July 2, 2008. While bonds bear interest in the daily rate mode, interest payments are on the fifth business day of each month. Holders may tender their bonds on any business day, provided the remarketing agent is given at least seven calendar days' prior notice of the purchase in the weekly rate mode, and notice by 10:00 a.m. New York time on the purchase date, in the daily rate mode. The bonds are subject to mandatory tender: (1) upon conversion of the interest rate; (2) upon expiration, substitution or termination of the LOC; and (3) on the fourth business day following receipt of written notice from the bank of an event of default under the Reimbursement Agreement, directing such mandatory tender. Optional and mandatory redemption provisions also apply to the bonds.

Bond proceeds will be used by the Authority to refund the outstanding principal amount of the Authority's Refunding Revenue Bonds Series 2007A, to finance equipment for use at the Authority's Fitzsimons Campus and certain other improvements at the Authority's Fitzsimons Campus, and to pay certain expenses incurred in connection with the issuance of the Series 2008 Bonds.

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