Fitch Rates California Infra & Econ Devel. Bank (JSerra Catholic HS) $55.705MM Ser 2009A, B & C.

NEW YORK -- Fitch Ratings assigns the following ratings to the California Infrastructure and Economic Development Bank variable rate demand revenue bonds (VRDBs) (JSerra Catholic High School Project) as follows:

-- $28,310,000 series 2009A bonds 'AA-/F1+';

-- $18,265,000 series 2009B bonds 'AA-/F1+';

-- $9,130,000 series 2009C bonds 'A/F1'.

The ratings are based on the support of irrevocable, direct-pay letters of credit (LOC) issued by Wells Fargo Bank, National Association with respect to the series 2009A bonds; U.S. Bank National Association, with respect to the series 2009B bonds, and Comerica Bank (Long-term IDR of 'A'; Outlook Negative by Fitch) with respect to the series 2009C bonds.

The banks are obligated to make payments of principal and interest when due, as well as purchase price for tendered bonds. The ratings will expire upon the earliest of: the stated expiration date of the LOCs, Aug. 12, 2012, upon conversion of the bonds to a term rate mode, any prior termination of the LOCs; and defeasance of the bonds. The LOCs provide full coverage of principal plus an amount equal to 46 days' interest at a maximum rate of 12% based on a 365-day year. The remarketing agent for the bonds is Wells Fargo Institutional Securities, LLC. The bonds are expected to be delivered on or about Aug. 28, 2009.

All three series of bonds will initially bear interest at the weekly rate mode, but may be converted to a daily or term interest rate mode. While bonds bear interest in the weekly rate mode, interest payments are made on the first business day of each month, commencing Oct. 1, 2009. During the weekly rate mode, bondholders may tender their bonds on any business day, provided the trustee is given seven days' prior notice of the purchase. The bonds are subject to mandatory tender upon substitution of the LOC and upon conversion of the interest rate mode. The bonds are subject to mandatory redemption upon expiration of the LOC, upon an event of default under the reimbursement agreement, and upon interest non-reinstatement of the LOC. Other optional and mandatory redemption provisions also apply to the bonds.

The bond proceeds will be used to refinance the construction, acquisition, improvement and equipping of the real property and improvements located in San Juan Capistrano, California.

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.