Fitch Ratings assigns underlying 'A+' rating for Houston's USD395m airport system subordinate lien revenue refunding bonds

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Fitch Ratings has assigned an underlying 'A+' rating to the city of Houston, Texas' USD395m airport system subordinate lien revenue refunding bonds series 2007A (AMT) and series 2007B (non-AMT).

The company said that the underlying 'A+' rating on USD2.2bn outstanding subordinate lien airport revenue bonds is affirmed.

Additionally, the series 2007A and series 2007B (the series 2007 bonds) will be issued as fixed-rate revenue bonds and will re-finance USD95m in outstanding commercial paper, as well as portions of outstanding subordinate lien revenue bonds. The series 2007 bonds will price via a negotiated sale led by UBS Investment Bank during the week of 24 July 2007.

The series 2007 bonds are also expected to be supported by a monoline insurance provider whose financial strength is rated as 'AAA' by Fitch.

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