Fitch Rates Port of Oakland's (California) $150MM Series A, B & C CP Notes 'F1+'

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has assigned an 'F1+' rating to the Port of Oakland, California's commercial paper (CP) notes (The Notes), series A (Exempt Facility), series B (Governmental) and series C (Taxable). The amount is not to exceed $150,000,000 for The Notes.

The rating is based on the support provided by an irrevocable direct- pay letter of credit (LOC) issued by Wells Fargo Bank, National Association (Wells Fargo; rated 'AA-/F1+' with a Stable Outlook by Fitch). The rating on the Notes will expire on the earlier of Aug. 2, 2013, the expiration date of the LOC, unless such date is extended, or upon any prior termination of the LOC.

U.S. Bank National Association, as the Issuing and Paying Agent (IPA) for the Notes is directed to request an advance under the LOC in accordance with its terms to order to pay the Notes at maturity. The LOC provides coverage for the principal amount of notes and 270 days of interest at 12% based upon a 365 day year.

The series A (Exempt Facility) and series B (Governmental) notes will be issued at par, with interest due at maturity. The series C (Taxable) notes will be issued at a discount. Following the occurrence of an event of default under the Reimbursement Agreement, Wells Fargo may direct the IPA to immediately stop the issuance of any additional notes and/or direct the IPA to draw in full under the LOC to pay the Notes as they mature.

Applicable criteria available at www.fitchratings.com:

--'U.S. Municipal Structured Finance Rating Criteria' (Dec. 17, 2009);

--'Rating Guidelines for Commercial Paper Note Programs Issued with External Support' (Nov. 11, 2009).

Additional information is available at www.fitchratings.com

Related Research:

U.S. Municipal Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=492084

Rating Guidelines for Commercial Paper Note Programs Issued with External Support

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=484026

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