Fitch Rates $200MM Bay Area Toll Auth VRDBs 2007 Ser A-1, B-1, C-1 & G-1 'AAA/F1+'

Business Wire, May 11, 2007

NEW YORK -- Fitch Ratings assigns a rating of 'AAA/F1 ' to the $200,000,000 Bay Area Toll Authority, California's San Francisco Bay Area Toll Bridge revenue bonds, variable-rate bonds, consisting of: $50,000,000 2007 series A-1 bonds; $50,000,000 2007 series B-1 bonds; $50,000,00 2007 series C-1 bonds; and $50,000,000 2007 series G-1 bonds. The long-term 'AAA' rating assigned to the bonds is based on the financial support provided by the financial guaranty insurance policy issued by Ambac Assurance Corporation. The policy, which insures scheduled payments of principal and interest on the bonds, extends to April 1, 2047, the maturity date of the bonds.

The 'F1 ' short-term rating on the bonds is based on the liquidity support of the standby bond purchase agreements (SBPAs) provided as follows: by JPMorgan Chase Bank, National Association (JPMorgan) for the 2007 series A-1 bonds; by Dexia Credit Local, acting through its New York Branch, for the 2007 series B-1 bonds; by Citibank, N.A. for the 2007 series C-1 bonds; and by Lloyds TSB Bank Plc, acting through its New York Branch, for the 2007 series G-1 bonds. JPMorgan is acting as agent bank pursuant to the SBPAs. The SBPAs provide for the payment of the principal component of purchase price and up to 36 days of interest calculated at a maximum rate of 12% per annum based on a year of 365 days. The SBPAs will expire on May 15, 2014, unless extended or earlier terminated pursuant to their terms. The 'F1 ' short-term rating assigned to the bonds will expire upon the expiration or termination of the SBPAs. Union Bank of California, N.A., as trustee, is required to give notice to the agent bank in the event that remarketing proceeds are insufficient to pay purchase price for tendered bonds. The remarketing agents for the bonds are J.P. Morgan Securities Inc. for the 2007 series A-1 bonds; Citigroup Global Markets Inc. for the 2007 series B-1 bonds; Stone & Youngberg LLC for the 2007 series C-1 bonds; and Lehman Brothers Inc. for the 2007 series G-1 bonds. The bonds are expected to be delivered on May 15, 2007.

The bonds initially will bear interest in the weekly rate mode but may be converted to bear interest in the daily, commercial paper, term, fixed, index, or auction rate modes. While the bonds bear interest in the daily and weekly rate modes, interest is payable on the first business day of each month, commencing June 1, 2007. Holders of bonds bearing interest in a daily or weekly rate mode may tender their bonds for purchase with prior notice. The bonds are subject to a mandatory tender on each interest rate mode conversion date; on the interest payment date immediately following the rate period for bonds in the commercial paper or term modes; upon the expiration or termination of the SBPAs; substitution of the SBPAs unless such substitution will not cause a reduction or withdrawal of the 'F1 ' short-term rating assigned to the bonds; and upon the occurrence of certain events of default under the SBPAs. The bonds are also subject to mandatory sinking fund redemption and optional redemption.

Bond proceeds will be used to pay for capital improvements to some of the San Francisco Bay Area bridges.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.