Fitch Rates Arizona Sports & Tourism Auth, $53MM VRDBs, 2008 'AA-/F1+'

Business Wire,  May 7, 2008  

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NEW YORK -- Fitch Ratings has assigned a 'AA-/F1+' rating to the Arizona Sports and Tourism Authority's (the authority) $53,050,000 senior variable rate demand revenue refunding bonds (VRDBs), (Multipurpose Stadium Facility Project), series 2008 (the bonds). The rating is based on the support provided by a direct-pay letter of credit (LOC) issued by Allied Irish Banks, p.l.c. acting through its New York branch (the bank, rated 'AA-/F1+' by Fitch), securing the bonds. The bank is obligated to make regularly scheduled payments of principal of and interest on the bonds and upon acceleration and redemption, as well as purchase price for tendered bonds.

The rating will expire upon the earliest of: May 15, 2011, the stated expiration date of the LOC, unless such date is extended; any prior termination of the LOC; and defeasance of the bonds. The LOC provides full coverage of principal plus an amount equal to 34 days' interest at a maximum rate of 12% based on a 365-day year and purchase price for tendered bonds. The Remarketing Agent for the bonds is RBC Capital Markets Corporation. The bonds are expected to be delivered on or about May 15, 2008.

The bonds initially bear interest at the weekly interest rate, but may be converted to a daily or term rate mode. While the bonds bear interest in the daily or weekly mode, interest payments are the first business day of each month, commencing June 2, 2008. Bondholders may tender their bonds on any business day, provided the paying agent is given prior notice of the purchase demand. The bonds are subject to mandatory tender: (1) on any conversion date, other than a conversion between the daily and weekly rate mode; (2) while in a term rate mode, upon conversion to a term mode of a different duration; (3) on the 15th day preceding the expiration date of the LOC; (4) upon substitution of the LOC; and (5) on the fifth day preceding the trustee's receipt of a written notice from the Bank stating that there has been an event of default under the reimbursement agreement and directing a mandatory tender of the bonds. Optional and mandatory redemption provisions also apply to the bonds.

Bond proceeds will be used to refund the issuer's $53,050,000 senior variable rate demand revenue bonds, (Multipurpose Stadium Facility Project), series 2005A and pay costs related to the issuance of the Bonds.

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.

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