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Fitch Rates $284.82MM City & County of San Francisco (CA) Airport Comm. Rfdg Issue 37 'AAA/F1+'
NEW YORK-(Business Wire)-May 6, 2008 - Fitch Ratings assigns a rating of 'AAA/F1+' to the $284,820,000 Airport Commission (Commission) of the City and County of San Francisco, California, San Francisco International Airport, second series variable-rate revenue refunding bonds, Issue 37, consisting of $205,100,000 Issue 37A and $79,720,000 Issue 37B. The long-term 'AAA' rating assigned to the bonds is based on the support provided by the financial guaranty insurance policy issued by Financial Security Assurance Inc. for the bonds. The policy, which insures scheduled payments of principal and interest on the bonds, extends to the final maturity date of the bonds.
The short-term 'F1+' rating on the bonds is based on the standby bond purchase agreement (SBPA) provided by DEPFA BANK plc. The SBPA provides for the payment of the principal component of purchase price and an amount equal to 36 days of interest calculated at a maximum rate of 12% per annum, based on a year of 365 days, when the bonds bear interest in a weekly rate mode. The SBPA will expire on May 5, 2009, unless extended or earlier terminated pursuant to its terms.
The 'F1+' short-term rating assigned to the bonds will expire upon the expiration or termination of the SBPA. The Bank of New York Trust Company, N.A., as trustee, is required to give notice to the bank in the event that remarketing proceeds are insufficient to pay purchase price for tendered bonds. Morgan Stanley & Co. Incorporated is the remarketing agent for the bonds. The bonds are expected to be delivered on May 7, 2008.
The bonds will bear interest in the weekly rate mode, and also may be converted to bear interest in the daily, commercial paper, term or fixed rate modes. While the bonds bear interest in the daily and weekly rate modes, interest is payable on the first business day of each month, commencing June 2, 2008. Holders of bonds bearing interest in a daily or weekly rate mode may tender their bonds for purchase with prior notice. The bonds are subject to a mandatory tender: (i) on interest rate mode change dates; (ii) on the interest rate change date for bonds in the commercial paper; (iii) upon the expiration or termination of the SBPA; (iv) upon the substitution of the SBPA or the insurance policy unless the trustee has received notice that such substitution will not cause a withdrawal or reduction of the rating assigned to the bonds; and (v) upon the occurrence of certain events of default under the SBPA. The bonds are also subject to mandatory sinking fund redemption and optional redemption.
Bond proceeds will be used to refund a portion of the Commission's outstanding 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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