S&P lifts Long Beach, Calif., bonds to A+

Standard & Poor's said it raised its senior secured rating to A+ from A- on Long Beach Bond Finance Authority, Calif.'s $635.7 million of senior secured revenue bonds, series 2007A, and $251.7 million of senior secured revenue bonds, series 2007B.

The ratings were removed from CreditWatch with negative implications, where they were placed on Feb. 27 following the downgrade of XL Capital Assurance Inc. XL provides debt service reserve and working-capital surety for the bonds.

S&P said the upgrade reflects assignment of ratings to Long Beach Gas & Oil, which was previously unrated. It is now rated AA- with a stable outlook. The rating is now tied to the A+/A-1 rating with a negative outlook on Merrill Lynch & Co. Inc., which guarantees the obligations of the gas supplier and interest rate swap counterparty.

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