BOSTON – Standard & Poor's Ratings Services assigned its 'AA' long-term rating, and stable outlook, to Massachusetts Health & Educational Facilities Authority's $124.352 million series 2009M revenue bonds, issued for Children's Hospital of Boston, and affirmed its 'AA' underlying (SPUR), with a stable outlook, on the authority's existing revenue debt, issued for Children's Hospital.

Children's long-term rating is now based on its SPUR given the entity's stronger credit quality compared to its insurance providers: Ambac Assurance Corp. now rated CC/Developing and National Public Finance Guarantee Corp., formerly known as MBIA Insurance Corp. of Illinois, now rated A/Developing.

The 'AA' rating incorporates the guarantee of Children's debt by its parent, Children's Medical Center, and reflects the hospital and medical center's very strong business position; solid financial profile; and effective management team, highlighted by strong operating results and a stellar balance sheet.

"Economic softness and Children's considerable capital plans currently preclude a higher rating," said Standard & Poor's credit analyst Jennifer Soule. "Conversely, a lower rating is highly unlikely. It would only occur if Children's performance or balance sheet were to weaken considerably for an extended period."

The 'AA' rating further reflects Children's maintenance of a strong business position as the preeminent pediatric provider in the competitive eastern Massachusetts market, combined with a strong in-migration for Children's services from outside the service area and a comprehensive service mix, all reflecting Children's strong national reputation; stellar balance sheet, characterized by excellent liquidity despite recent investment market volatility; and effective management team with a sound strategic plan, highlighted by the development of a broad array of community affiliations and expansion outside of Boston.