Fitch to Revise Rating on Monroe County Hospital Auth , 2002B A+/F1'

Business Wire, March 6, 2008

NEW YORK -- Effective March 20, 2008, Fitch Ratings will affirm the long-term rating currently assigned to the $31,050,000 (original principal amount, current outstanding principal amount is $29,110,000) Monroe County Hospital Authority (PA), Hospital revenue bonds, series B of 2002 (Pocono Medical Center) at 'A ' and assign a short-term rating of 'F1' to the bonds. The revision of the rating is in connection with the addition of an irrevocable, direct-pay letter of credit (LOC) issued by PNC Bank, National Association (PNC), securing the bonds, which will become effective on March 20, 2008.

The bonds were originally issued in an auction rate mode with the support of an insurance policy provided by Radian Asset Assurance Inc. (Radian). On the effective date of the LOC, the bonds will be converted from the current auction rate mode to a variable rate demand weekly rate mode, and will be supported by the LOC. Although the Radian bond insurance policy will remain in place, on and after the conversion date, Fitch's rating on the bonds will be 'A /F1', based solely upon the support of the PNC LOC. PNC is obligated to make payments of principal and interest on the bonds when due, as well as purchase price for tendered bonds. The LOC provides full coverage of principal plus an amount equal to 50 days of interest computed at a maximum rate of 12%, based on a year of 365 days, and purchase price for tendered bonds. The rating will expire on the earliest of: (i) March 20, 2011, the stated expiration date of the LOC, unless such date is extended; (ii) any prior termination of the LOC; or (iii) the defeasance of the bonds. The remarketing agent for the bonds is Bear, Stearns & Co. Inc.

Upon conversion, the bonds will bear interest in a weekly rate mode, but may be converted to a daily, commercial paper, auction, or term interest rate mode. While bonds bear interest in the weekly rate mode, interest payments are paid on the first business day of each month, commencing Apr. 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 paying agent. The bonds are subject to mandatory tender on (1) conversion of the interest rate mode, (2) the repurchase date while in the commercial paper rate mode, and (3) the expiration, termination or substitution of the LOC. 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.