Fitch To Raise MEAG Var Rate Sub Bds Ser 1994B, C, D & E To `AAA/F1+'.Business Editors NEW YORK--(BUSINESS WIRE)--Aug. 23, 2001 $200,000,000 Municipal Electric Authority of Georgia Project One subordinated bonds Subordinated bonds Securities that fall after others in priority of claims on the entity in the case of financial distress. series 1994B, 1994C, 1994D and 1994E will be raised to 'AAA/F1+' by Fitch, Inc., effective Sept. 10, 2001. Upon such date, the existing irrevocable, direct-pay Letter of Credit (LOC LOC - lines of code ) currently supporting the bonds will be substituted with a municipal bond insurance Municipal bond insurance An insurance policy which guarantees payment on municipal bonds in the event of default . municipal bond insurance A guarantee from a third party that principal and interest will be paid to a bondholder. policy issued by Financial Security Assurance Inc., (FSA FSA Financial Services Authority FSA Food Standards Agency (UK) FSA Farm Service Agency (USDA) FSA Financial Services Agency (Japan) ), and a liquidity facility, in the form of a Standby Bond Purchase Agreement (SBPA SBPA Simple Branch Prediction Analysis SBPA Scottish Beer and Pub Association (UK) SBPA School of Business and Public Administration SBPA School-Based Performance Award SBPA School-Based Performance Awards ) provided by Dexia Credit Local, acting through its New York Agency. In connection with the substitution, and on the same date, a mandatory purchase of the bonds is scheduled to occur. Upon the substitution, the long-term 'AAA' rating will be based upon the support of FSA's municipal bond insurance policy, which will insure the scheduled payment of principal of and interest on the bonds. Fitch's short-term 'F1+' rating on the bonds will be based on the SBPA, and will expire on Sept. 10, 2016, the 'Stated Expiration Date' as defined therein, or upon other earlier termination of the SBPA. |
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