Fitch Affirms Los Angeles (CA) Dept of Water & Pwr Ser 2001 B VRDBs at 'AA/F1+'
Source: Business Wire
--$87,500,000 subseries B-1;
--$87,500,000 subseries B-2;
--$50,000,000 subseries B-3.
The affirmation of the rating is in connection with the substitution of the current standby bond purchase agreement (SBPA) providing liquidity support for the bonds.
The long-term 'AA' rating on the bonds continues to be based on the rating assigned to the water system bonds issued by the Department of Water and Power of the City of Los Angeles. On the effective date of Feb. 22, 2007, the short-term 'F1+' rating assigned to the bonds will be based on a substitute liquidity facility in the form of a SBPA issued by Banco Bilbao Vizcaya Argentaria, S.A. The SBPA provides for the payment of the principal component of the purchase price of the bonds and up to 34 days of interest calculated at a maximum rate of 12% per annum based on a year of 365 days in the event that remarketing proceeds are insufficient.
The short-term rating expires on Feb. 22, 2010, the stated expiration date as defined in the SBPA, or if such date is extended, on the extended expiration date, or upon any prior termination of the SBPA.
JPMorgan serves as the remarketing agent for the subseries B-1 bonds. UBS Investment Bank serves as remarketing agent for the subseries B-2 bonds. E.J. De La Rosa & Co., Inc. serves as remarketing agent for the subseries B-3 bonds.
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.
Contact:
Fitch Ratings
Mario Civico, 212-908-0796, New York
(for information on the variable-rate bonds)
Douglas Scott, 512-215-3725, Austin
(for information on the long-term rating assigned to the Los Angeles Dept
of Water and Power)
or
Media Relations:
Cindy Stoller, 212-908-0526, New York
