2008-11-25 01:07:02 -

Fitch Ratings has assigned 'F1+' short-term ratings and affirmed the 'AA-' long-term ratings on the $225,000,000 New Mexico Hospital Equipment Loan Council, hospital system revenue bonds (Presbyterian Healthcare Services), series 2008B ($75,000,000), 2008C ($75,000,000) and 2008D ($75,000,000).
The long-term 'AA-' ratings reflect the credit quality of Presbyterian Healthcare Services. For further information on the long-term ratings assigned to the Presbyterian Health Services bonds, please see Fitch's rating action commentary dated Oct. 30, 2008 at cts.businesswire.com/ct/CT"id=smartlink&url=http%3A%2F%2Fwww ... The short-term 'F1+' ratings are based upon the liquidity support of standby bond purchase agreements (SBPA) provided by JPMorgan Chase Bank, N.A. (rated 'AA-/F1+') with respect to the series 2008B bonds, and Wells Fargo Bank, National Association (rated 'AA/F1+') for the series 2008

C and 2008 D bonds.
The SBPAs provide for the payment of the principal component of purchase price and up to 35 days of interest calculated at a maximum rate of 12% per annum, based on a year of 365 days while in the weekly or daily rate modes. The SBPAs will expire on Nov. 24, 2011, unless extended or earlier terminated pursuant to their respective terms. The remarketing agent for the bonds is Goldman, Sachs & Co. The bonds are expected to be delivered on or about Nov. 25, 2008.
The bonds will initially bear interest in the weekly rate mode, but each series may be converted to bear interest at a daily, flexible, LIBOR indexed, term or fixed rate mode. While the bonds bear interest at a daily or weekly rate mode, interest is payable on the first business day of each month, commencing Dec. 1, 2008. Holders of bonds bearing interest at a daily or weekly rate mode may tender their bonds for purchase with prior notice to the tender agent. The SBPAs cover the bonds while they are in a daily or weekly rate mode only.
Each series of bonds is independently subject to mandatory tender on the respective conversion date, except for conversions between the daily and weekly rate modes. However, the SBPA will not provide liquidity support for mandatory tenders associated with conversion. Upon a proposed conversion, the tender agent must obtain the written consent of the bank prior to sending notice of conversion to holders. If the bank provides its consent to the conversion of the bonds, the conversion will be conditioned upon the tender agent's receipt of sufficient funds to pay the purchase price payment upon the related mandatory tender. If sufficient funds are not provided by the obligor, remarketing agent, or an alternate liquidity facility, a failed conversion will be declared. Upon a failed conversion the bonds will be subject to mandatory tender. The SBPAs will provide liquidity support for a mandatory tender upon a failed conversion. Additionally, following a failed conversion, the bonds will remain in the current interest rate mode.
Each series of bonds is also independently subject to mandatory tender on the stated expiration date of the related SBPA, on the substitution date of the related SBPA, and upon the occurrence of certain events of default under the related SBPA. The bonds are also subject to optional and mandatory redemption.
The proceeds of the bonds will be used to (i) reimburse the cost of construction and equipping of certain buildings to be used for medical care or otherwise needed to operate a health facility, (ii) refund the issuer's hospital system revenue refunding bonds (Presbyterian Healthcare Services) series 2005A and series 2005B (collectively, the 'series 2005 bonds'); (iii) refinance a taxable loan which refunded the Council's hospital system revenue bonds (Presbyterian Healthcare Services) series 2004A, series 2004B, series 2004C and series 2004D, and the City of Albuquerque, New Mexico's hospital system revenue bonds (Adjustable Convertible Extended Securities - ACES) (Presbyterian Healthcare Services) 1993 series A (collectively, the 'Wells Fargo Loan' and, together with the series 2005 bonds, the 'Refunded Bonds') and (iv) pay certain expenses of issuing the series 2008 bonds and the refunding of the refunded bonds.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, cts.businesswire.com/ct/CT"id=smartlink&url=http%3A%2F%2Fwww ... 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

Steven Stubbs, +1-212-908-0676

(for information on the short-term ratings, New York)

James LeBuhn, +1-312-368-2059

(for information on the long-term ratings, Chicago)

Cindy Stoller, +1-212-908-0526

(Media Relations, New York)

mailto:cindy.stoller@fitchratings.com