Moody's rates Arizona State University bonds A1

Moody's Investors Service said it assigned an A1 underlying rating to Arizona State University's $53.64 million series 2008 variable-rate demand revenue refunding bonds issued through Sun Devil Energy Center LLC.

The expected sale date is July 15.

Proceeds will be used to refund the university's series 2004 variable-rate demand revenue bonds issued by Sun Devil Energy Center. The series 2004 bonds were originally issued to acquire, construct and equip a combined heating, cooling and electric generation plant located on the main Tempe campus of Arizona State University.

The bonds are expected to be insured by Assured Guaranty Corp., and RBC Bank (Aa3/P-1) will provide a standby bond purchase agreement. Moody's will assign long- and short-term ratings to the bonds based on review of the insurance policy and the standby bond purchase agreement.

Moody's affirmed the ratings on the university's outstanding debt, including the Aa3 rating on system revenue bonds and the A1 and A2 underlying ratings on certificates of participation.

The outlook is stable.

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