In this note, the stability of the standard linear, time-invariant, multi-input multi-output unity-feedback system is investigated in the presence of either sensor or actuator failures. Any diagonal stable perturbation is included in the failure descriptions. Stabilizing controllers are synthesized for two failure classes : the first class allows at most one failure at a time; the second class requires at least one connection without failure. A parameterization of all stabilizing controllers is achieved with prior knowledge of the failure. A controller design method requiring no knowledge of the failure is also presented; this method is restricted to plants for which certain closed-loop transfer functions can be made diagonal.