NEW YORK--(BUSINESS WIRE)-- On the effective date of Aug. 4, 2010, Fitch Ratings will confirm the short-term rating of 'F1+' assigned to the Harbor Department of the City of Los Angeles commercial paper notes (notes) consisting of: commercial paper notes, series A (exempt facility AMT); commercial paper notes, series B (exempt facility Non-AMT); commercial paper notes, series C (Governmental Non-AMT); and commercial paper notes, series D (taxable). The confirmation is in connection with (i) the increase in the authorized amount of the commercial paper program from not to exceed $100,000,000 to not to exceed $200,000,000; (ii) an increase in the Line of Credit Agreement (LCA) provided by JPMorgan Chase Bank, National Association (Chase), which provides liquidity for the commercial paper notes, from $100,000,000 to $200,000,000 plus 270 days of interest at 12% based upon a 365 day year and (iii) the extension of the stated expiration date of the LCA from July 29, 2010 to July 29, 2012.

The 'F1+' rating on the notes continues to be based on liquidity support in the form of a LCA provided JPMorgan Chase Bank, National Association (Chase; rated 'AA-/F1+', Outlook Stable by Fitch). Fitch currently rates revenue bonds of the Harbor Department of the City of Los Angeles 'AA' (see rating action commentary dated June 23, 2010 available at www.fitchratings.com). The 'F1+' rating on the notes will expire on the earlier of July 29, 2012, the new expiration date of the LCA, unless such date is extended, or upon any prior termination of the LCA. Loop Capital Markets and Morgan Stanley & Co. Inc. are the dealers for the notes.

U.S. Bank National Association, as the Issuing and Paying Agent for the notes is directed to request an advance under the LCA whenever proceeds of the sale of notes are insufficient to pay maturing notes. The LCA provides a commitment to cover the principal amount of notes issued, up to a maximum of $200,000,000 and 270 days of interest at 12% based upon a 365 day year.

Following the occurrence of an event of default under the Line of Credit, Chase may direct that no additional notes be issued. In addition, the Line of Credit may be terminated at Chase's option upon the occurrence of specified termination events.

Applicable criteria available at 'www.fitchratings.com':

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

--'Rating Guidelines for Commercial Paper Note Programs Issued with External Support' dated 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

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.

CONTACT:

Fitch Ratings, New York
Linda Friedman, 212-908-0727
(for more information on the commercial paper program)
Seth Lehman, 212-908-0755
(for more information on the Harbor Department of the City of Los Angeles)
or
Media Relations:
Cindy Stoller, 212-908-0526
Email: cindy.stoller@fitchratings.com

KEYWORDS:   United States  North America  New York

INDUSTRY KEYWORDS:   Professional Services  Banking

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