Jefferson County, Ala., forbearance agreements extended to May 29

By Caroline Salls

Pittsburgh, May 6 - Jefferson County, Ala., has obtained extensions to some of the forbearance agreements with some of its standby warrant purchase agreement liquidity providers and interest rate swap transaction counterparties, according to a notice released Wednesday.

Specifically, liquidity providers JPMorgan Chase Bank, the Bank of New York Mellon, Syncora Guarantee and Financial Guaranty Insurance Corp. and swap transaction counterparties JPMorgan Chase Bank, Bear Stearns Capital Markets Inc. and Bank of America, NA have agreed to extend their forbearance agreements to May 29.

On March 24, Moody's Investors Service reduced the long-term insured rating assigned to the warrants insured by FGIC to Caa3 from Caa1 in conjunction with a corresponding reduction in FGIC's strength and financial enhancement rating.

In addition, Standard & Poor's has reduced the long-term insured rating assigned to the insured by FGIC to CC from CCC in conjunction with a corresponding reduction in FGIC's financial strength and financial enhancement rating.

Moody's and S&P both withdrew FGIC's insured rating.

The FGIC-insured warrants are classified as outlook negative by Moody's and S&P.

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