NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) has assigned a long-term rating of AA- with a Stable Outlook to the Municipal Improvement Corporation of Los Angeles (“MICLA” or the “Corporation”) Lease Revenue Refunding Bonds, Series 2016-A (Capital Equipment) and Series 2016-B (Real Property). The Series 2016-A and Series 2016-B Bonds will total approximately $120.6 million and $684.5 million, respectively. This rating is based on the City’s long-term general obligation rating of AA with a Stable Outlook and evaluation of the factors discussed in KBRA’s U.S. State and Local Government Abatement Lease Methodology, published on August 28, 2014. Generally, ratings assigned to the majority of U.S. state and local abatement lease obligations by KBRA will be one to two notches below the government lessee’s GO rating.
KBRA also affirms the long term rating of AA with a Stable Outlook on the general obligation debt of the City of Los Angeles, California. This rating applies to all of the City of Los Angeles’ outstanding general obligation bonds except for bonds backed by a letter of credit or liquidity facility. The City has approximately $790.4 million of general obligation bonds outstanding, as of February 1, 2016. This rating is based on KBRA’s U.S. Local General Obligation Rating Methodology, published on May 31, 2012.
Further information on the City may be found in the City of Los Angeles, CA 2015 Surveillance Report published on August 14, 2015.
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About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).
