Atlanta no longer obligated to buy back airport revenue bonds due 2030

By Devika Patel

Knoxville, Tenn., Oct. 2 - The city of Atlanta said it is no longer required to purchase its $490.17 million in variable-rate airport general revenue refunding bonds that were issued in June 2003 and mature on Jan. 1, 2030.

On Sept. 28, Standard & Poor's announced a further downgrade of its counterparty credit, financial strength and financial enhancement ratings on MBIA Insurance Corp. to BB+ from BBB.

As a result of the downgrade, and effective Sept. 28, an event of termination has occurred under the bond purchase agreements.

Accordingly, the company's obligation to purchase affected bonds has terminated.

Affected bonds include $88.33 million in series 2003 RF-B-1 bonds, $81.71 million in series 2003 RF-B-23 bonds, $81.71 million in series 2003 RF-B-33 bonds, $75 million in series 2003 RF-C-13 bonds, $81.71 million in series 2003 RF-C-2 3 bonds and $81.71 million in series 2003 RF-C-3 bonds.

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