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MOODY'S ASSIGNS 'A1' RATING TO LOS ANGELES COUNTY TRANSPORTATION COMMISSION; CALIFORNIA FTC FUNDS TO BE AVAILABLE THROUGH LEASING PROGRAM

 MOODY'S ASSIGNS 'A1' RATING TO LOS ANGELES COUNTY TRANSPORTATION COMMISSION; CALIFORNIA FTC FUNDS TO BE AVAILABLE THROUGH LEASING PROGRAM
 NEW YORK, June 11 /PRNewswire/ -- Effective yesterday, Moody's Investors Service assigned an 'A1' rating to the Los Angeles County Transportation Commission's issuance of $113.0 million certificates of participation, expected through negotiation June 15. This is the third such financing in the country. The other two issues were rated by Moody's.
 In assigning the rating, Moody's cited that the upper medium grade security is provided by the ample and diverse revenue streams available to support lease payments. While lease payments are expected to be paid from the Federal Transit Administration (FTA) capital grant funds, other available revenues include the State Transportation Development Funds as well as locally derived sales tax revenues. Although the buses will be purchased on behalf of and will be operated by Southern California Rapid Transit District (RTD), the debt is an unconditional obligation of LACTC.
 Through a memorandum of understanding with RTD, LACTC will deduct amounts equal to lease payments before forwarding funding allocations to RTD. In addition lease payments will be deposited with the trustee one year in advance to offset any potential risk from a delay in federal funding. Furthermore, future financial quality of the system will be determined by the effectiveness of the consolidation of management between LACTC and RTD into the new Los Angeles County Metropolitan Transportation Authority (MTA). The ability of the MTA to manage its extensive capital program will continue to be assessed as the rail lines and other programs are introduced into service.
 -0- 6/11/92
 /CONTACT: Helen Wong, 212-553-4154, Barbara Flickinger, 212-553-7736, or Mark Campa, 415-274-1711, all of Moody's/ CO: Los Angeles County Transportation Commission ST: California IN: TRN SU: RTG


KD-PS -- NY076 -- 9437 06/11/92 17:12 EDT
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Publication:PR Newswire
Date:Jun 11, 1992
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