Fitch to Revise Rating on Metropolitan Washington Airport Auth 2003D-1 & 2003D-2.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Effective March 12, 2008, Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. will revise the long-term rating currently assigned to the $150,000,000 ($140,775,000 currently outstanding) Metropolitan Washington Airports Authority Metropolitan Washington Airports Authority is an independent airport authority, created by the United States Congress to oversee management, operations, and capital development of Washington, D.C. , airport system revenue variable rate bonds series 2003D, consisting of subseries 2003D-1 bonds and subseries 2003D-2 bonds (the bonds) and assign a short-term rating of 'F1+' to both subseries of bonds. The revision of the rating is in connection with the addition of two irrevocable, direct-pay letters of credit (LOCs) supporting the bonds. The subseries 2003 D-1 bonds will be assigned a 'AA-/F1+' rating based on the support provided by a LOC LOC - lines of code issued by Wachovia Bank, National Association (Wachovia); the subseries 2003D-2 bonds will be assigned a 'A+/F1+' rating based on the support provided by a LOC issued by Regions Bank. The bonds were originally issued in an auction rate mode with the support of an insurance policy provided by XL Capital Assurance Inc. (XL) On the effective date of the LOCs, the bonds will be converted from the current auction rate mode to a variable rate demand weekly rate mode, and each subseries will be supported by its corresponding LOC. Although the XL bond insurance policy will remain in place, on and after the conversion date, Fitch's rating on the bonds will be based solely upon the support of the respective LOC. Each bank is obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to make payments of principal and interest on the respective subseries of bonds when due, as well as purchase price for tendered bonds. Each of the LOCs provides full coverage of principal plus an amount equal to 34 days of interest computed at a maximum rate of 12%, based on a year of 365 days, and purchase price for tendered bonds. The rating will expire on the earliest of: (i) March 12, 2013, the stated expiration date Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. of each of the LOCs, unless such date is extended; (ii) any prior termination of the LOCs; or (iii) the defeasance of the bonds. The remarketing agent for the subseries 2003D-1 is Goldman, Sachs & Co. and Morgan Stanley is the remarketing agent for the subseries 2003D-2. Upon conversion, the bonds will bear interest in a weekly rate mode, but may be converted to a daily, flexible, auction, or term interest rate mode. While bonds bear interest in the weekly rate mode, interest payments are paid on the first business day of each month, commencing April 1, 2008, and bondholders have the option to tender their bonds on any business day, with the requisite prior notice to the remarketing agent and the paying agent Paying Agent An agent who accepts payments from the issuer of a security and then distributes the payments to the holders of the security. Also known as a "disbursing agent. . The bonds are subject to mandatory tender on (1) conversion of the interest rate mode, (2) on the repurchase date while in the flexible rate mode, and (3) the expiration, termination or substitution of the LOC. Optional and mandatory redemption provisions also apply to the bonds. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. 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 Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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