New York, February 23, 2009 -- Substitute in the first paragraph " has placed 24 of the
29 outstanding GSRs under review" for "has placed 23 of the
28 outstanding GSRs under review". Substitute in the first
paragraph "Moody's will recalibrate these 24 GSRs in the next few
weeks" for " Moody's will recalibrate these 23 GSRs in the
next few weeks". Add in the ratings list for University of
Miami, "and Series 2008B". Add in the rating
list "Wisconsin (State of) General Fund Annual Appropriation Bonds,
Series 2003A, Series 2008 A&B, rated Aa1. Last
rating action: 3/20/2008".
Revised release follows.
Moody's to Recalibrate Existing U.S. Municipal Global Scale
Moody's Investors Service announced today that it will recalibrate its
outstanding global scale ratings (GSRs) on taxable municipal bond issues
and municipal issuers' obligations under swap transactions and,
as a result, has placed 24 of the 29 outstanding GSRs under review.
Of the other five existing GSRs, three have already been recalibrated,
and two have already been placed under review, in conjunction with
rating actions on the associated municipal scale ratings. Moody's
will recalibrate these 24 GSRs in the next few weeks. The recalibration
is expected to result in lower ratings in some, but not all,
The recalibrated GSRs will be assigned by rating committees composed of
analysts from across Moody's Investors Service, including analysts
from the corporate, financial institutions, sovereign,
sub-sovereign and credit policy teams as well as U.S.
municipal bond analysts. The committees will employ a benchmarking
process designed to produce recalibrated global scale ratings that will
be comparable to ratings assigned to other issuers of similar credit risk.
Moody's previously announced plans to migrate all of its U.S.
municipal ratings to the global scale. In September 2008,
we provided general guidance about the process, including the results
of our preliminary analysis as to the likely migrated global scale ratings
for state and local government general obligations, as well as enterprise
obligations. At that time, we also announced our plans to
recalibrate the existing GSRs at the same time as we migrated the larger
We have temporarily suspended the migration of the municipal portfolio
as a whole due to the severe disruptions in the credit markets.
Consequently, we are proceeding with the recalibration of the existing
GSRs at this time. The recalibrations will be announced as they
are completed. To the extent that, during this period,
there is a change in the municipal scale rating associated with any of
these GSRs, the recalibration of the GSR will be done simultaneously
with the change in the municipal scale rating. Any future changes
in these global scale ratings would be related to a change in fundamental
credit position rather than a result of the recalibration of the ratings
The following ratings are placed under review as part of Moody's recalibration
of its municipal global scale ratings:
-- Allentown, PA Federally Taxable General Obligation
Notes, Series A of 2007 and Federally Taxable General Obligation
Notes, Series B of 2007, rated Aa3. Last rating action:
-- Connecticut Taxable General Obligation Bonds (Teachers'
Retirement Fund 2008 Series A, B and C - Current Interest
Bonds), rated Aaa. Last rating action: 2/12/2009.
-- Florida Hurricane Catastrophe Fund (CAT Fund) Finance
Corporation Floating Rate Notes, Series 2007A, rated Aa1.
Last rating action: 7/9/2008.
-- Haverstraw (Town of) NY. Urban Renewal Serial
Bonds, Series 2008A (General Obligation -- Federally
Taxable), rated Aa1. Last rating action: 5/2/2008.
-- Illinois General Obligation Bonds, Pension Funding
Series of June 2003, rated Aaa. Last rating action:
-- Kansas Development Finance Authority Revenue Bonds,
Series 2004C (Kansas Public Employees Retirement System), rated
Aaa. Last rating action: 9/9/2008.
-- Kern County Water Agency Imp. Dist. 4,
CA Water Revenues Certificates of Participation (Improvement District
No. 4) Series 2008B (Federally Taxable), rated Aa1.
Last rating action: 2/29/2008.
-- Lebanese American University Taxable Bonds, Series
2007, rated A3. Last rating action: 2/5/2008.
-- Michigan Municipal Bond Authority School Loan Revolving
Revenue and Refunding Bonds (Federally Taxable), Series 2008A-1
Taxable Bonds, Series 2008A-2 Taxable Bonds, Series
2008A-3 Taxable Bonds & Series 2008A-4 Taxable Bonds,
rated Aaa. Last rating action: 3/19/2008.
-- The Nature Conservancy Extendible Notes, rated
Aa1. Last rating action: 5/5/2008.
-- New Jersey Economic Development Authority Business Employment
Incentive Program Series A and B, rated Aa1. Last rating
-- New Jersey Sports and Exposition Authority State Contract
Bonds Sub-Series 2007 B1, 2, & 3 and Series 2008
Series A Refunding Bonds, rated Aa1. Last rating action:
-- Oregon General Obligation Pension Bonds, 2003 Series,
rated Aaa. Last rating action: 1/27/2009.
-- Port Authority of New York and New Jersey Series 150th,
Taxable Bonds, rated Aa1. Last rating action: 11/26/2008.
-- Puerto Rico Employees Retirement System Senior Pension
Funding Bonds, Series A and B, rated A1. Last rating
-- Purdue Research Foundation, IN, Taxable Bonds,
Series 2007, rated Aaa. Last rating action: 12/7/2007.
-- Sacramento County, CA, Taxable Bonds,
Series 2008 (Taxable Pension Funding Bonds. Ref.),
rated Aa1. Last rating action: 3/13/2008.
-- San Francisco (City and County of) Taxable General Obligation
Refunding Bonds, Series 2008R-2, rated Aaa.
Last rating action: 8/4/2008.
-- St. Louis Municipal Finance Corporation,
MO, Series 2007 (Taxable) Leasehold Revenue Bonds, rated Aa3.
Last rating action: 11/6/2008.
-- Tulsa Public Facilities Authority, OK, Capital
Improvements Revenue Bonds, Taxable Series 2008, rated Aa1.
Last rating action: 3/31/2008.
-- University of Miami Revenue Bonds Series 2007C and Series
2008B, rated Aa3. Last rating action: 3/23/2008.
-- University of Pittsburgh Medical Center (UPMC) Interest
Rate Swaps related to Series 2007 A-1, A-2,
B-1 and B-2, rated Aa1. Last rating action:
-- University System of New Hampshire Series 2007 Taxable
Bonds, rated Aa1. Last rating action: 3/20/2008.
-- Wisconsin (State of) General Fund Annual Appropriation
Bonds, Series 2003A, Series 2008 A&B, rated Aa1.
Last rating action: 12/1/2008.
Structured Finance Group
Moody's Investors Service
Correction to Text, Feb. 13, 2009 Release: Moody's to Recalibrate Existing U.S. Municipal Global Scale Ratings
Structured Finance Group
Moody's Investors Service