Fitch Rates Frederick Memorial Hospital's (Maryland) Revs at 'BBB+'; Outlook Stable

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has assigned a 'BBB+' rating to the Maryland Health and Higher Educational Facilities Authority revenue bonds, series 2008, issued on behalf of Frederick Memorial Hospital (FMH) and affirmed all other outstanding parity debt at 'BBB+'. The Rating Outlook is Stable.

Bond proceeds will be used to refund FMH's 2006 Financial Guaranty Insurance Company (FGIC) insured auction-rate bonds. The bonds will be issued in variable-rate mode with no insurance, however liquidity support will be provided by a direct pay letter of credit (LOC) by BB&T Corporation (rated 'AA-/F1+' by Fitch). Fitch will rate the bonds based on the LOC support closer to the date of issuance.

Located in Frederick, MD FMH is a 246 licensed-bed (206 staffed bed) acute care hospital. FMH had total operating revenues of $264 million in fiscal 2007. FMH has covenanted to provide audited annual financial statements and quarterly disclosure to bondholders. Disclosure information will be disseminated through the NRMSIRs. For more information regarding FMH, please refer to Fitch research report dated Dec. 26, 2007 available on the Fitch Ratings web site www.fitchratings.com.

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.