Fitch gives AA-/F1+ to Houston bonds

Fitch Ratings said that, on the effective dates of the proposed conversion of Houston's $653.325 million of combined utility first-lien revenue bonds, series 2004B, from the auction-rate insured mode to a weekly variable-rate mode, it will upgrade the long-term rating assigned to the bonds to AA- from A+ and assign a short-term rating of F1+.

The bonds consist of $225 million of subseries 2004B-1, $135.55 million of subseries B-2, $75 million of subseries B-3, $75 million of subseries B-4 and $142.775 million of subseries B-5.

The conversion dates are April 8 for subseries B-1, April 10 for subseries B-2, April 11 for subseries B-3, April 11 for subseries B-4 and April 14 for subseries B-5.

The AA-/F1+ will be based solely on a letter of credit severally issued by Bank of America, NA; Bank of New York; Dexia Credit Local, New York Branch; and State Street Bank and Trust Co.

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