Moody's rates Mayo Clinic, Minn., debt Aa2/VMIG1, Aa2/NR

Moody's Investors Service said it assigned ratings to Mayo Clinic's $330 million of series 2008A, 2008B, 2008C, 2008D and 2008E health care facility revenue bonds, all issued by the City of Rochester, Minn.

Aa2/VMIG1 ratings were assigned to the $100 million of series 2008A and $50 million of series 2008B. Aa2/NR ratings were assigned to the $50 million of series 2008C, $60 million of series 2008D and $70 million of series 2008E.

The outlook is stable.

Separately, Moody's said it assigned an Aa2/NR rating to Luther Hospital, Wis.'s $90 million of series 2008 health care facilities revenue bonds to be issued by the Wisconsin Health and Educational Facilities Authority.

The Wisconsin bonds are guaranteed by Mayo, which wholly owns Luther Hospital. They will be structured as term-rate bonds with a put feature in about one year.

The VMIG1 rating on Rochester's series 2008A and 2008B bonds is based on standby purchase agreements from Wells Fargo Bank, NA and the Northern Trust Co., respectively.

Wells Fargo is rated Aaa/P-1 with a stable outlook, and Northern Trust is rated Aa3/P-1 with a positive outlook.

Sale of the bonds was expected on April 8.

Moody's also said it affirmed the Aa2, Aa2/VMIG1 and Aa2/NR ratings on Mayo's approximately $1.5 billion of debt to remain outstanding.

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