Moody S Assigns Mig 1 Rating To Los Angeles County's Trans Based Upon A Letter Of Credit From Six Banks

Business Wire, June 22, 1995

NEW YORK--(BUSINESS WIRE)--June 22, 1995--Today Moody's Investors Service assigned a MIG 1 to $1.3 billion Los Angeles County Tax and Revenue Anticipation Notes dated July 3, 1995.

The notes are secured by an irrevocable letter of credit provided by Credit Suisse (as Agent Bank), Morgan Guaranty Trust Company of New York, Swiss Bank, Union Bank of Switzerland, Westdeutcshe Landesbank Girozentrale and Bank of America NT&SA. The letter of credit will be drawn upon at maturity or acceleration of the notes, if necessary, to pay principal and interest on the notes.

Moody's rating on the notes is based solely on the credit support provided by the several but not joint letter of credit from the six banks as well as a structure which ensures full and timely payment of the notes at maturity or upon any earlier acceleration directed by the banks.

The MIG 1 rating on the notes directly reflects the short term credit quality of the banks providing the letter of credit and will be revised if the short term rating of any of the banks is changed. The rating does not reflect the credit quality of the County of Los Angeles.

Moody's recently placed the county's long term debt under review, due to the severe fiscal pressures facing the county. For more information on Los Angeles County's current financial condition and our credit concerns, please see our Press Release and Credit Comment, both dated June 19, 1995.

CONTACT: Kenneth Kurtz

Vice President and Supervisor

212/553-1737

OR

Heather Singer

Analyst

212/553-7937