Moody's rates Mercy Hospital bonds Aaa/VMIG1

Moody's Investors Service said it affirmed the long-term Aaa rating on the $68.4 million series 2006H revenue bonds issued by the Maine Health and Higher Educational Facilities Authority for Mercy Hospital and assigned a VMIG1 short-term rating to the bonds.

The rating actions came in connection with the conversion of the interest rate mode on the bonds to a weekly rate mode from the auction-rate mode and provision of a standby bond purchase agreement from Wachovia Bank NA. Moody's long- and short-term ratings for Wachovia Bank, NA are Aa1 and Prime-1, respectively. The bonds issued for Mercy Hospital carry an underlying long-term rating of Aa3 based on the rating of the Maine Reserve Fund Program.

The conversion of the interest rate mode and reoffering of the bonds was scheduled to occur on July 10.

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