2008-05-14 03:43:01 -

- Fitch Ratings assigns a rating of 'AA-/F1+' to $54,705,000 Vermont Educational and Health Buildings Financing Agency, variable rate hospital revenue refunding bonds (Fletcher Allen Health Care Project), series 2008A. The rating is based on the support provided by an irrevocable direct-pay letter of credit (LOC) issued by TD Banknorth, National Association (the bank), securing the bonds. The bank is

obligated to make payments of principal and interest when due, as well as the purchase price for tendered bonds. The rating will expire upon the earliest of: the stated expiration date of the LOC, April 30, 2013, unless such date is extended; any prior termination of the LOC; and defeasance of the bonds. The LOC provides full coverage of principal plus an amount equal to 35 days' interest at a maximum rate of 12%, based on a 365-day year, and the purchase price for tendered bonds. The remarketing agent for the bonds is Citigroup Global Markets Inc. The bonds are expected to be delivered on or about May 21, 2008.

The bonds initially bear interest at the weekly rate mode; interest payments are made on the first Wednesday of each month, commencing June 4, 2008. The bondholders may tender their bonds on any business day, provided the trustee is given required prior notice of the purchase. The bonds are subject to mandatory tender upon conversion of interest rate, upon expiration or substitution of the LOC, and upon the order of Fletcher Allen Healthcare, Inc. (the hospital). Additional mandatory and optional redemption provisions also apply to the bonds.

The bond proceeds will be used to currently refund the hospital's series 2000B 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.

Fitch Ratings, New York
Marina Kaganovskaya, 212-908-0803
or
Media Relations:
Cindy Stoller, 212-908-0526