Moody's rates Los Angeles airport bonds Aa3, A1

Moody's Investors Service said it assigned an Aa3 underlying rating to $8 million series 2008B and $34 million series D senior revenue refunding bonds issued by the City of Los Angeles Department of Airports for the Los Angeles International Airport, as well as the $614 million series 2008A senior revenue bonds. Moody's assigned an A1 underlying rating to the airport's $250.1 million 2008C subordinate revenue bonds.

The expected sale date is July 31.

The outlook is stable.

The 2008A bonds will be used to pay for capital expenditures and reimburse the airport for previous expenditures related to the renovation of the Tom Bradley International Terminal, including refunding a portion of commercial paper notes used to finance previous improvements. The 2008B bonds will refund all outstanding series 1995D revenue bonds, and the 2008D bonds will refund all outstanding series 2002A revenue bonds, provided that market conditions permit at least 3% present value savings. The 2008C subordinate bonds will be used to pay for capital expenditures and reimburse the airport for previous expenditures related to the south airfield improvement project.

Moody's affirmed the Aa3 rating on the airport's outstanding senior-lien debt totaling $124 million.

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