Fitch Rates Maryland Health & Educ Facils Auth 2008 Howard County General Revs 'AA+/F1'.

NEW YORK -- Fitch Ratings assigns a rating of 'AA+/F1' to the $40,000,000 Maryland Health and Educational Facilities Authority revenue bonds, Howard County General Hospital Issue, series 2008. The long-term 'AA+' is based jointly on the guarantee of debt service payments provided by The Johns Hopkins Hospital and Johns Hopkins Bayview Medical Center (the Guarantors, both currently rated 'AA-' by Fitch) and the support provided by an irrevocable, direct-pay letter of credit (LOC) issued by PNC Bank, National Association (the Bank) (currently rated 'A+/F1' by Fitch) securing the bonds. The short-term 'F1' rating is based solely on the LOC.

The long-term 'AA+' rating is based on Fitch's methodology which considers the likelihood of the failure of both a rated obligor (or its guarantor) 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 any of the Johns Hopkins Hospital, Johns Hopkins Bayview Medical Center or the Bank were to be downgraded to below 'A', this methodology would no longer be applicable and the rating would be revised to reflect the higher of the rating assigned to the bank or the rating assigned to the Guarantors.

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 will expire upon the earliest of: May 8, 2013, the initial expiration date of the LOC, unless such date is extended; any prior termination of the LOC; or defeasance of the bonds. The LOC provides full coverage of principal plus an amount equal to 42 days' interest at a maximum rate of 10% based on a 365-day year, and purchase price for tendered bonds. The remarketing agent for the bonds is PNC Capital Markets, LLC. The bonds are expected to be available for delivery on or about May 8, 2008.

The bonds will initially bear interest in the weekly interest rate mode, but may be converted to a short-term, long-term or fixed rate. While in the weekly mode, interest will be paid on the first business day of each month, commencing June 2, 2008. While the bonds are in the weekly rate mode, bondholders may tender bonds on any business day, with seven days prior notice. The bonds are subject to mandatory tender: on each interest rate conversion date; upon the expiration, non-reinstatement, termination or substitution of the LOC; on the day next succeeding the last day of short- or long-term interest rate period; and on any business day specified by the bond issuer or the obligated group, following 20 days' prior notice. Optional and mandatory redemption provisions also apply to the bonds.

Bond proceeds will be used to finance the expansion, renovation and equipping of a 219-licensed-bed acute care hospital.

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.