The 'AA' long-term rating on bonds issued for the Mayo Foundation, Minn. reflects a decline in Mayo's financial performance through the fiscal year ending Dec. 31, 2000 despite robust growth in patient volumes and patient care revenue. Mayo's declining financial performance coupled with a reduction in days' operating cash on hand and a slightly more aggressive capital structure present increased credit risk in the face of heavy capital spending. The short-term ratings of bonds outstanding that carry both a long- and short-term rating are 'A-1+' and reflect SBPAs in effect from various financial institutions. Rochester, Minn. Will issue shortly its $200 million variable-rate bonds series 2001 for Mayo Foundation backed by liquidity support agreements from several financial institutions and Jacksonville
