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Fitch Rates Irvine Ranch Water District (CA) Consolid Ref Bds 2008A&B 'A+/F1+'.

NEW YORK -- Fitch Ratings assigns a rating of 'A+/F1+ 'to the $60,215,000 Irvine Ranch Water District (CA), Consolidated refunding bonds, series 2008A, and $100,355,000 series 2008B. The rating is based on the support provided by two separate irrevocable, direct-pay letters of credit (LOCs) issued by Landesbank Baden-Wurttemberg, acting through its New York Branch, securing the bonds. The bank is obligated to make payments of principal, interest when due, as well as the purchase price for tendered bonds. The ratings will expire on the earliest of: (i) Apr. 23, 2011, the stated expiration date of the LOCs, unless such date is extended; (ii) any prior termination of the LOCs or defeasance of the bonds.

The LOCs provide full coverage of principal plus an amount equal to 45 days of interest computed at a maximum rate of 12%, based on a year of 365 days, and purchase price for tendered bonds. The remarketing agent for the bonds is Lehman Brothers. The bonds are expected to be available for delivery on or about Apr. 24, 2008.

The bonds initially bear interest in the daily interest rate mode, but may be converted to a weekly, monthly, semi-annual, annual, VIP pricing modes or a fixed interest rate mode. While in the daily mode, interest will be paid on the fifth business day of each month, commencing on May 7, 2008. While in the daily, weekly or monthly rate modes, bondholders may tender bonds on any business day with the requisite prior notice. The bonds are subject to mandatory tender on (1) the date of any mode change; (2) upon the substitution or expiration of the LOCs; and (3) the termination of the LOCs following a notice from the bank to the trustee of an event of default under the Reimbursement Agreement directing a mandatory tender of the bonds. Alternatively, upon such an event of default, the bank has the option to direct an acceleration of the bonds. Optional and mandatory redemption provisions also apply to the bonds as set forth in the Bond Indenture.

The proceeds of the bonds will be used to refund series 2006 and 2007 general obligation 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.
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Publication:Business Wire
Date:Apr 16, 2008
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