Fitch Affirms 'A+' Rating & Removes From Rating Watch 5 Gas Prepaid Deals

Business Wire, Jan 5, 2009

NEW YORK -- Fitch Ratings affirms five prepaid gas revenue bond projects at 'A+' and removes them from Rating Watch.

This action is taken in connection with Fitch's affirmation of Merrill Lynch & Co. Inc.'s (MER, supplier's guarantor) long-term Issuer Default Rating (IDR) of 'A+' and removal of the IDR from Rating Watch Evolving, and assignment of a Stable Outlook. The rating and Outlook on MER reflects the completed acquisition by Bank of America. (For more information on the acquisition, please see Fitch's press release dated Jan. 2, 2009).

Fitch has affirmed and removed from Rating Watch Evolving the following gas revenue bond project ratings:

--Main Street Natural Gas, Inc. gas project revenue bonds, series 2006B at 'A+';

--Main Street Natural Gas, Inc. gas project revenue bonds, series 2007A at 'A+';

--Public Authority for Colorado Energy gas purchase revenue bonds, series 2008 at 'A+';

--Roseville Natural Gas Financing Authority gas revenue bonds, series 2007A at 'A+'.

Fitch has also affirmed and removed from Rating Watch Negative the following gas revenue bond project rating:

--Long Beach Bond Financing Authority gas revenue bonds, series 2007A and 2007B at 'A+'.

The Rating Outlook for each project is Stable.

The long-term ratings and Outlook for the affected gas prepay bonds are determined by Fitch's assessment of each structure, the role of each counterparty in the structure, and their credit quality, including MER. In each case, bond proceeds were used to fund a natural gas prepay transaction between the issuer and Merrill Lynch Commodities, Inc. (MLCI), the gas supplier. MER is the guarantor of MLCI's obligations, as gas supplier and remarketer.

For additional details regarding each of the affected transactions, please see the corresponding reports available on the Fitch Ratings web site at www.fitchratings.com.

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.