Fitch Affirms Los Angeles Department of Airports CP Notes at 'F1+'.
-- Series A notes (tax-exempt-non-AMT);
-- Series B notes (tax-exempt-AMT);
-- Series C notes (federally taxable).
The 'F1+' rating is based on the support of the letter of credit (LOC) provided by BNP Paribas, which provides for payment of principal and interest. Effective March 11, 2005, the severally obligated Bayerische Landesbank, JPMorgan Chase Bank, and Landesbank Baden-Wurttemberg LOC will be replaced by an alternate LOC provided by BNP Paribas, acting through its San Francisco Branch.
The alternate LOC covers principal and interest at a rate not to exceed 12%, the maximum rate. The total outstanding principal amount of the series A, series B, and series C notes together cannot exceed $163 million, the stated amount of the LOC.
The rating on the bonds will expire upon the alternate LOC's stated termination date (March 10, 2010), unless extended pursuant to its terms, or upon any prior termination of the LOC.