Fitch Rates Cleveland, Ohio, $288.780MM Airport System Revs, Series 2008A-H ‘AA+/F1+’

NEW YORK–(EMWNews)–Fitch Ratings has assigned ‘AA+/F1+’ ratings to the City of Cleveland,

Ohio, airport system revenue bonds, series 2008A through series 2008H

(collectively, the ‘Bonds’). The ratings are based on the direct-pay

letters of credit (‘LOCs’) supporting the bonds and the application of

Fitch’s joint probability methodology. The long-term ratings assigned to

the bonds are based jointly on the underlying rating assigned to the

bonds (currently rated ‘A’ by Fitch), and the support provided by the

LOCs issued by Wachovia Bank, National Association (series 2008A, B, &

C); U.S. Bank National Association (series 2008D & H); KBC Bank N.V.

(series 2008 E & G); and UBS AG, Stamford Branch (series 2008F)

(collectively, the ‘Banks’) securing the bonds. The short-term ‘F1+’

ratings are based solely on the LOCs. The Banks are rated: Wachovia

Bank, National Association (‘AA-/F1+’); U.S. Bank National Association

(‘AA-/F1+’); KBC Bank N.V. (‘AA-/F1+’); and UBS Bank, Stamford Branch

(‘AA-/F1+’). The long-term ‘AA-‘ rating of Wachovia Bank, National

Association is on Rating Watch Negative as of June 27, 2008. For more

information on the underlying credit, please refer to Fitch’s press

release published on July 8, 2008.

The long-term ratings are based on Fitch’s methodology which considers

the joint probability 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. Fitch has determined a low degree of correlation,

which results in a rating of ‘AA+/F1+’ for each series of the bonds. If

either the underlying rating assigned to the bonds or a Bank were

downgraded to ‘A-‘ or lower, the joint probability could no longer be

applied, and the long-term rating for the bonds would then be adjusted

to the higher of the Bank rating and the underlying bond rating.

The Banks are obligated to make payments of principal of and interest on

the bonds upon maturity and redemption, as well as purchase price for

tendered bonds. The ratings assigned to the series 2008A through series

2008C bonds will expire upon the earliest to occur of (i) July 16, 2009,

the stated expiration date of the LOC, unless such date is extended;

(ii) the date on which the bonds are paid in full; (iii) the second

business day following the conversion of the bonds to a fixed rate mode;

(iv) the date on which the Bank honors and acceleration drawing; (v) the

date on which the Bank honors a drawing made under the LOC to purchase

bonds following the trustee’s receipt of a written notice from the Bank

stating that there has been an event of default under the reimbursement

agreement and directing a mandatory tender of the bonds; (vi) the date

on which the trustee surrenders the LOC to the Bank for cancellation;

and (vii) the date on which the Bank honors the final drawing available

to be made under the LOC. The ratings assigned to the series 2008D

through series 2008H bonds will expire upon the earliest to occur of (i)

July 15, 2011, the stated expiration date of the related LOCs, unless

such dates are extended; (ii) the date on which the Bank honors the

final drawing available to be made under the LOC which is not subject to

reinstatement; and (iii) the date on which the LOC is surrendered to the

Bank for cancellation.

The bonds initially bear interest at a weekly rate, but may be converted

to a daily, short-term, long-term, or fixed rate mode. While the Bonds

bear interest in the weekly rate mode, interest payments are on the

first business day of each month, commencing Aug. 1, 2008. Holders may

tender their bonds on any business day, provided the paying agent is

given at least seven calendar days’ prior notice of the purchase. The

bonds are subject to mandatory tender: (i) while in a short- or

long-term mode, the first day following the last day of each short- or

long-term interest period; (ii) on each conversion date; (iii) one

business day preceding the interest payment date next preceding the

expiration or termination date of the LOC; (iv) the date on which the

LOC is substituted; (v) not later than one business days following the

trustee’s receipt of a written notice from the Bank stating that there

has been an event of default under the reimbursement agreement and

directing a mandatory tender of the bonds; and (vi) not later than one

business day following the trustee’s receipt of a written notice from

the Bank stating that the LOC will not be reinstated. Optional and

mandatory redemption provisions also apply to the bonds.

The underwriters for the series 2008A through series 2008C bonds are

Wachovia Securities, RBC Capital Markets, and Rice Financial Products

Company. The underwriters for the series 2008D through series 2008H

bonds are JP Morgan Securities, Inc.; RBC Capital Markets; and Loop

Capital Markets, LC. The sale is expected to be on or about July 17,

2008. The bonds are being issued to refund the City’s airport system

revenue bonds, series 2003A-C, series 2007A1 and series 2007A2 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.

Major Newsire & Press Release Distribution with Basic Starting at only $19 and Complete OTCBB / Financial Distribution only $89

Get Unlimited Organic Website Traffic to your Website 
TheNFG.com now offers Organic Lead Generation & Traffic Solutions