2008-05-14 23:51:57 -

- Effective May 15, 2008, Fitch Ratings will raise to 'AAA' the current 'AA-' long-term rating assigned to the $113,000,000 Health and Educational Facilities Authority of the State of Missouri health facilities revenue bonds (SSM Health Care), consisting of $64,600,000 series 2005A-1 and $48,400,000 series 2005C-2. At the same time, Fitch will assign a short-term 'F1+' rating to the series

2005A-1 bonds and confirm the 'F1+' rating on the series 2005C-2 bonds. These rating actions are in connection with (1) the reoffering of the bonds in a weekly interest rate mode, (2) the release of the Financial Guaranty Insurance Policy (FGIC) currently supporting the bonds, and the release of the Bank of New York liquidity facility supporting the series 2005C-2 bonds, and (3) the provision of letters of credit (LOCs) for each series of bonds, by Bank of America, N.A.

Upon the reoffering, the long-term 'AAA' rating will be based jointly on SSM Healthcare (the obligor, currently rated 'AA-' by Fitch) and the support provided by two separate irrevocable, direct-pay LOCs issued by Bank of America, N.A., securing the bonds. (Bank of America is currently rated 'AA/F1+' by Fitch. The long-term 'AA' component of Bank of America's rating is on Rating Watch Negative, as of March 7, 2008). The short-term 'F1+' ratings are based solely on the LOCs. Following reoffering, the remarketing agent for the series 2005A-1 bonds will be UBS Securities, LLC and the remarketing agent for the series 2005C-2 bonds will be Citigroup Global Markets, Inc.

The long-term 'AAA' rating is based on Fitch's methodology which considers the likelihood of the failure of both a rated obligor and a bank LOC provider. The methodology results in a rating that is up to two notches higher than the stronger of the two credits if the following conditions are met: (1) both entities have a rating of 'A' or higher; (2) the transaction is structured such that payments from both the municipal obligor and the bank are in the flow of funds and both entities would have to fail to perform before the bonds defaulted; and (3) the credit of the bank and the rated obligor have no more than a medium degree of correlation. In this instance, there is a low degree of correlation. If either of the obligor or the bank were to be downgraded to below 'A', this methodology would no longer be applicable and the ratings would be revised to reflect the higher of the rating assigned to the bank or the rating assigned to the Obligor.

The bank is obligated to make payments of principal and interest when due as well as purchase price for tendered bonds during the weekly interest rate mode. The rating for either series of bonds will expire upon the earliest of: May 13, 2011, the initial expiration date of the LOCs, unless such date is extended; any prior termination of the LOC; or defeasance of the bonds. The LOCs provide full coverage of principal plus an amount equal to 54 days' interest at a maximum rate of 12% based on a 365-day year, and purchase price for tendered bonds. The bonds are expected to be available for delivery on or about May 15, 2008.

Each series of bonds may be converted to a daily, short-term, long-term, indexed put, auction or fixed rate mode. During the weekly and daily rate modes, holders have the option to tender their bonds on any business day, following required notice to the tender agent. The bonds are subject to mandatory tender as follows: (1) on each interest rate conversion date; (2) on the first day after the end of each long- or short-term interest rate period; and (3) five days prior to the expiration or termination date and on the substitution date of an SBPA. Optional and mandatory redemption provisions also apply to the bonds pursuant to the terms of the documents.

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.

Fitch Ratings, New York
Trudy Zibit, +1-212-908-0689
(for information on the series 2005 bonds)
Michael Burger, +1-212-908-0555
(for information on SSM Healthcare)
Cindy Stoller, +1-212-908-0526
(Media Relations)