2008-07-24 23:26:18 -

- Fitch Ratings has assigned 'AA-/F1+' ratings to the Indiana Health and Educational Facility Financing Authority's $149,975,000 revenue bonds (Clarian Health Obligated Group) consisting of the following:

--$74,825,000 series 2005C;

--$75,150,000 series 2005D.

The rating action is in connection with an interest rate conversion of the Bonds from an auction-rate mode to a weekly-rate mode. The Bonds

were issued initially in the auction-rate mode and credit support for the Bonds initially was provided by two municipal bond insurance policies issued by MBIA Insurance Corp. The bond insurance policies will be cancelled and the 2005C and 2005D bonds will be converted to a weekly mode on Aug. 1, 2008 and Aug. 4, 2008 respectively. The rating is based on the support provided by two irrevocable, direct-pay letters of credit (LOCs) issued by Branch Banking and Trust Company (the Bank) which support each series of bonds.

The Bank is obligated to make payments of principal of and interest on the Bonds upon maturity and redemption, as well as the purchase price for tendered bonds. Each of the LOCs provide full coverage of principal plus an amount equal to 35 days' interest at a maximum rate of 12% based on a year of 365 days and purchase price for tendered bonds. The ratings will expire upon the earliest of: (a) Aug. 1, 2011 for the 2005C bonds and Aug. 4, 2011 for the 2005D bonds, the initial stated expiration dates of the respective LOCs, unless such date is extended; (b) upon any prior termination of the respective LOCs; or (c) upon defeasance of the Bonds. The remarketing agent for the 2005C bonds is Merrill Lynch, Pierce, Fenner & Smith Incorporated and Citigroup Global Markets Inc. for the 2005D bonds.

The Bonds will initially bear interest at the weekly rate but may be converted to a daily, auction, short term, or long term mode. While the Bonds bear interest in the weekly mode, interest payments will be made on the first Wednesday of each month, commencing Aug. 6, 2008. Holders may tender their bonds on any business day with the requisite prior notice of the purchase.

The Bonds are subject to mandatory tender on: 1) the day next succeeding the last day of each bond interest term; 2) the first day of each interest rate period; 3) upon conversion of an interest rate mode; 4) upon termination, replacement or expiration of the respective credit facilities; and 5) at the direction of the Borrower or the Credit Facility Providers. 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.

Fitch Ratings, New York
Richard Park, +1-212-908-0289
Media Relations:
Sandro Scenga, +1-212-908-0278