Moody's gives A1 to Mobile G.O. warrants

Moody's Investors Service said it assigned an A1 rating to the city of Mobile, Ala.'s $87.62 million series 2008B and $3.94 million series 2008C.general obligation warrants.

The expected sale date is July 15.

Moody's also affirmed the A1 rating on $275.9 million in previously issued parity debt.

Series 2008B proceeds will advance refund the city's series 1998 G.O. bonds for an estimated net present value savings of $1.62 million or 2.81%, as well as provide an estimated $9.5 million in new money for public safety projects.

The series 2008C bonds will pay off an $18.56 million loan with the Retirement System of Alabama, creating a projected savings of $3.27 million. Additionally, the series 2008C proceeds will provide $3 million in new money to finance a new gangway for the Cruise Line Enterprise at the Port of Mobile.

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