Moody's gives Orange County, Calif., transportation bonds P-1 rating

Moody's Investors Service said it assigned a P-1 rating of Orange County, Calif., Local Transportation Authority's renewed measure M subordinate sales tax revenue commercial paper notes (limited tax bonds), series A and series B.

Moody's said that each series of notes has a sale amount of about $200 million with an expected sale date of Feb. 6.

The rating is based on a direct-pay letter of credit provided by Dexia Credit Local; Bank of America, NA; BNP Paribas; and JPMorgan Chase Bank, NA. Each bank's obligation under the letter of credit is for 25% of the principal amount plus 270 days' interest on both series of notes.

If the short-term rating of any of the institutions is changed, the rating on the notes will be changed to reflect the rating of the then lowest-rated institution.

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