Standard&Poor's Ratings Services lowered its rating on North Carolina Medical Care Commission's hospital revenue bonds (Pooled Equipment Financing Project) series 1985 to 'AA-/A-1+' from 'AA/A-1+' following the addition of a letter of credit provided by KBC Bank N.V. (AA-/A-1+) and the cancellation of the bond insurance policy provided by MBIA (AA/Neg). The new rating reflects a letter of credit (LOC) provided by KBC Bank N.V. (AA-/A-1+). In general, financial guaranty policies are noncancellable unilaterally by either the bond insurer or the policyholder without regard to the investors. However, if all parties to an insured transaction, including the insurer, the issuer and the investors, reach agreement as to the cancellation of the policy, we will take appropriate rating action. Standard&Poor's
