Dépêches

Fitch Rtes Metro Washington Airports Auth VRBs Series 2009D 'AAA/F1+'

Dépèche transmise le 22 juin 2009 par Business Wire

NEW YORK--(BUSINESS WIRE)--Fitch Ratings assigns a rating of 'AAA/F1+' to the $136,825,000 Metropolitan Washington Airports Authority (MWAA), airport system revenue variable rate bonds (VRBs) series 2009D (Non-AMT) consisting of:

--$61,825,000 subseries 2009D-1;

--$75,000,000 subseries 2009D-2.

The long-term 'AAA' rating is based jointly on the long-term 'AA' rating assigned by Fitch to MWAA revenue bonds (see the Fitch press release dated June 2, 2009, available on www.fitchratings.com) and the support provided by an irrevocable, direct-pay letter of credit (LOC) issued by Bank of America N.A. (rated 'A+/F1+' by Fitch), securing the bonds. The short-term 'F1+' rating is based solely on the LOC.

The long-term 'AAA' rating is based on Fitch's dual-party pay methodology which considers the likelihood of the failure of both a rated obligor and a bank LOC provider. The methodology results in a rating that is up to two notches higher than the stronger of the two credits if the following conditions are met: (1) both entities have a rating of 'A' or higher; (2) the transaction is structured such that payments from both the municipal issuer and the bank are in the flow of funds and both entities would have to fail to perform before the bonds defaulted; and (3) the credit of the bank and the rated obligor have no more than a medium degree of correlation. In this instance, Fitch has determined a low degree of correlation which results in a rating of 'AAA/F1+' for the bonds. If either the underlying rating on the bonds or the rating of Bank of America N.A. were to be downgraded to 'A-' or lower, this methodology would no longer be applicable and the long-term rating would then reflect the higher of the two ratings.

The bank is obligated to make payments of principal, interest and purchase price when due. The rating on the bonds will expire upon the earliest of: July 2, 2012, the expiration date of the LOC, unless extended; any prior termination of the LOC; or defeasance of the bonds. The LOC provides full and sufficient coverage of principal plus an amount equal to 48 days of interest computed at a maximum rate of 12%, based on a year of 365 days, and purchase price for tendered bonds. The bonds are expected to be available for delivery on or about July 2, 2009. The remarketing agent for the bonds is Banc of America Securities LLC.

The series 2009D-1 bonds will initially bear interest in a weekly rate mode, but may be converted to a daily rate, term rate, auction rate or flexible rate mode. The series 2009D-2 bonds will initially bear interest in a daily rate mode, but may be converted to a weekly rate, term rate, auction rate or flexible rate mode. While bonds bear interest in the weekly rate and daily rate modes, interest payments are paid on the first business day of each calendar month, commencing Aug. 3, 2009 and bondholders have the option to tender their bonds on any business day, with the requisite prior notice. The bonds are subject to mandatory tender on (1) conversion of the interest rate mode, except between daily and weekly rate modes; (2) the business day next succeeding the last day of each term or flexible rate mode period, (3) the substitution or expiration of the LOC; (4) the fifth business day following notice from the LOC provider that an Event of Default or notice of non-reinstatement has occurred under the terms of the Reimbursement Agreement; and (5) 20 days after the Trustee has received notice from the MWAA directing a mandatory tender.

Optional and mandatory redemption provisions also apply to the bonds.

The series 2009D bonds are being issued to refinance the MWAA's outstanding flexible-term PFC revenue notes, series A, B, C and D.

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.