Fitch Rates Los Angeles (CA) Muni Improvement Corp Lease Rev CP Notes, Series A-1 and B-1 'F1'

NEW YORK--()--Fitch Ratings assigns a rating of 'F1' to the Municipal Improvement Corporation of Los Angeles lease revenue commercial paper (CP) (Los Angeles Convention Center) tax-exempt series A-1 and taxable series B-1 notes (notes).

KEY RATING DRIVERS

The rating is based on the support provided by an irrevocable direct-pay letter of credit (LOC) issued by The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU; rated 'A/F1', Stable Outlook), acting through its New York branch, which has a stated expiration date of Nov. 16, 2018, unless extended or earlier terminated. The BTMU LOC stated amount of $115,500,000 provides coverage for a combined amount of principal and interest due upon maturity of both series of notes.

U.S. Bank National Association, as the Issuing and Paying Agent (IPA) for the notes, is directed to request an advance under the LOC to pay principal and interest on maturing notes. The LOC provides sufficient coverage for note issuance up to $115,500,000 inclusive of interest coverage.

Series A-1 notes will be issued at par, with interest due at maturity. Series B-1 notes may be issued at par or at a discount. Following the occurrence of an event of default under the LOC reimbursement agreement, BTMU may direct the IPA to immediately stop the issuance of any additional notes. In such event, the LOC will expire after all the notes supported by such LOC mature and have been paid from funds drawn on the LOC. In addition, BTMU may direct the IPA to make a final drawing for the principal and interest to accrue on all outstanding notes. The LOC will terminate 15 days after receipt by the IPA of the final drawing notice or when BTMU honors such final drawing, if earlier. The dealers for the notes are J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC.

RATING SENSITIVITIES

The rating is exclusively tied to the short-term rating that Fitch maintains on the bank providing the LOC and will reflect all changes to that rating.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Rating Guidelines for Letter of Credit-Supported Bonds and Commercial Paper (pub. 21 May 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=866152

U.S. Municipal Structured Finance Criteria (pub. 23 Feb 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=862222

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=993759

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=993759

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Primary Analyst
Janet Rosen
Analytical Consultant
+1-312-368-3172
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Linda Friedman
Senior Analyst
+1-212-908-0727
or
Committee Chairperson
Joseph Staffa
Senior Director
+1-212-908-0829
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Janet Rosen
Analytical Consultant
+1-312-368-3172
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Linda Friedman
Senior Analyst
+1-212-908-0727
or
Committee Chairperson
Joseph Staffa
Senior Director
+1-212-908-0829
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com