Amend: Fitch Rates Memorial Sloan-Kettering Cancer Center (NY) Bonds 'AA'; Outlook...

Amend: Fitch Rates Memorial Sloan-Kettering Cancer Center (NY) Bonds 'AA'; Outlook Stable

NEW YORK--(Business Wire)--
This is a correction for a message issued on March 14, 2008. It
amends the headline and first paragraph.

Fitch Ratings assigns the rating of 'AA' to approximately $450
million series 2008 bonds (2008A-1 and 2008A-2) Dormitory Authority of
the State of New York Memorial Sloan-Kettering Cancer Center (MSKCC)
revenue bonds. The series 2008 bonds are being issued to refund
MSKCC's series 2002A revenue bonds and pay associated costs of
issuance. The bonds are expected to sell via negotiation beginning
April 7, 2008. In addition, Fitch affirms the 'AA' underlying rating
to all of MSKCC's outstanding debt.

The 'AA' rating and the Stable Outlook are supported by MSKCC's
excellent liquidity position, strong fundraising ability, superior
clinical reputation, effective management team, and increasing volume
trends. At fiscal year-end Dec. 31, 2007 MSKCC had approximately $3.3
billion in unrestricted cash, which equaled 683 days cash on hand and
compared favorably to the Fitch 'AA' category median of 237 days.
Cushion ratio and cash to debt increased to 35.1 times (x) and 272.6%
in fiscal 2007, up from 32x and 244.7% in fiscal 2006. This excellent
liquidity position is supported by MSKCC's philanthropic program,
which has strongly supported the organization's capital building
program and overall mission. Philanthropic revenues were approximately
$239 million in fiscal year (FY) 2007, and averaged $200 million over
the past five years. Coverage of maximum annual debt service ((MADS)
which excludes a $113 million principal amount due in 2036) was 5.4x
for 2007, compared to the Fitch 'AA' category median of 5.6x.

As one of the world's leaders in providing cancer care, MSKCC has
an excellent clinical reputation and is consistently ranked at or near
the top of U.S. cancer hospitals, according to U.S. News and World
Report. Furthermore, MSKCC garnered 14.4% of all cancer discharges in
New York City in 2007, the highest market share of any hospital in the
city for inpatient cancer services. Inpatient admissions for fiscal
2007 grew to 21,868 from 21,179 in 2006 and outpatient visits grew by
5% increasing to 443,831 in 2007 from 431,160 in 2006.

Credit concerns are minimal, but include MSKCC's ambitious $1.8
billion five-year capital plan, which calls for continued development
of ambulatory care facilities in the surrounding suburbs in addition
to main campus improvements. Funding for the program is expected to
come from operating cash flow, philanthropy and $200 million in bonds
tentatively scheduled for 2009 or 2010. MADS as a percent of net
revenues at 4.7% is moderately elevated for the rating category, but
is offset by the very strong liquidity position.

MSKCC includes a 514-licensed-bed specialty hospital located on
the Upper East Side of Manhattan, an institute for cancer research, a
graduate school, and other affiliates following the mission of the
prevention, treatment and cure of cancer. MSKCC had total operating
revenues of almost $2 billion in fiscal 2007. MSKCC covenants to
provide both annual and quarterly disclosure including balance sheet,
income statement, cash flows, utilization statistics, and management
discussion and analysis to bondholders and Fitch. Fitch views this
positively and notes that disclosure to date has been thorough and
timely.

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.

Fitch Ratings
Jeff Schaub, 212-908-0680
Michael Burger, 212-908-0555
Cindy Stoller, 212-908-0526 (Media Relations)

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