Fitch’s rating definitions and the terms of use of such ratings are available onthe agency’s public site, ”. Published ratings, criteriaand methodologies are available from this site, at all times. Fitch’s code ofconduct, confidentiality, conflicts of interest, affiliate firewall, complianceand other relevant policies and procedures are also available from the ‘Code ofConduct’ section of this site. The bonds were originally issued on March 22, 1990 and the proceeds were usedfor the acquisition of the property of The Montefiore Hospital Association ofWestern Pennsylvania.

Optional and mandatoryredemption provisions also apply to the bonds pursuant to the terms of theauthorizing documents. While bonds bear interest in theweekly rate mode, interest is payable on the first business day of each month.During the weekly rate mode, holders have the option to tender their bonds onany business day, following the required prior notice to the tender agent. The bonds bear interest at the weekly rate, but may be converted to a flexible,semiannual, long-term or fixed rate mode. The remarketing agentfor the bonds is BNY Mellon Capital Markets, LLC. The ratingswill expire upon the earliest of: (i) June 23, 2011, the initial statedexpiration date of the LOC, unless such date is extended; (ii) any priortermination of the LOC; or (iii) defeasance of the bonds.

The LOC provides full and sufficient coverage of principal plus an amount equalto 51 days’ interest at a maximum rate of 10% based on a year of 365 days andpurchase price for tendered bonds, while in the weekly rate mode. Fitch has determined a low degree ofcorrelation, which results in a rating of ‘AA+/F1+’ for the bonds. If either theunderlying rating assigned to the bonds or the bank were downgraded to ‘A-’ orlower, this methodology could no longer be applied, and the long-term rating forthe bonds would then be adjusted to the higher of the bank rating and theunderlying bond rating. The methodology results in a rating that is up to two notches higherthan 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 structuredsuch that payments from both the municipal issuer and the bank are in the flowof funds and both entities would have to fail to perform before the bondsdefaulted; and (3) the credit of the bank and the rated obligor have no morethan a medium degree of correlation. The short-term ‘F1+’ rating had beenbased on the liquidity support provided by JPMorgan Chase Bank, NationalAssociation in the form of a standby bond purchase agreement.

The long-term’AA+’ rating assigned to the bonds is now based jointly on the underlying ratingassigned to the bonds (currently rated ‘AA-’ with a Negative Rating Outlook byFitch), and the credit support provided by the letter of credit (LOC) issued byBank of New York Mellon (the bank) securing the bonds The bank is rated’AA-/F1+’ with a Positive Outlook The short-term ‘F1+’ rating is based solelyon the LOC. The long-term rating is based on Fitch’s dual party pay methodology whichconsiders the likelihood of the failure of both a rated obligor and a bank LOCprovider. The long-term rating had been based on thecredit quality of the University of Pittsburgh Medical Center (UPMC), formerlyPresbyterian-University Health System, Inc. The rating action is in connection with the mandatory tender and remarketing ofthe bonds upon substitution of the credit and liquidity support for the bondswhich occurred on June 23, 2009.