Moody's rates N.Y.C. G.O. bonds Aa3/VMIG1

Moody's Investors Service said it assigned Aa3/VMIG1 ratings to eight subseries of the City of New York's general obligation bonds, fiscal 2008 series J, multi-modal bonds being issued as variable-rate demand obligations.

Tax-exempt subseries J-r and J-5 will bear interest in the daily mode. Tax-exempt subseries J-9 through J-11 and taxable subseries J-12 through J-14 will bear interest in the weekly mode.

The ratings affect $100 million of subseries J-4, $101.405 million of subseries J-5, $100 million of subseries J-9, $100 million of subseries J-10, $100 million of subseries J-11, $103.16 million of subseries J-12, $140 million of subseries J-13 and $100 million of subseries J-14.

Sale of all eight subseries was expected on April 1.

The short-term ratings are based on the credit quality of banks as providers of the standby bond purchase agreement (SBPA).

Bank of America, rated Aaa/P-1, provides the SBPA for subseries J-4; Dexia, rated Aa1/P-1, provides the SBPA for subseries J-5 and J-12; and Bank of Nova Scotia, rated Aa1/P-1, provides the SBPA for subseries J-9.

BNP Paribas, rated Aa1/P-1, provides the SBPA for subseries J-10; KBC, rated Aa2/P-1, provides the SBPA for subseries J-11; and Lloyds provides the SBPA for subseries J-13 and J-14.

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