Fitch to Take Various Rating Actions on CPCFA VRDBs Series 01A, 06A and 07A

NEW YORK--(BUSINESS WIRE)--

On the effective date of Nov. 14, 2012, Fitch Ratings will take rating actions on the following California Pollution Control Financing Authority (CPCFA) variable-rate demand solid waste disposal revenue bonds:

--,$9,845,000 (The Ratto Group of Companies Inc. Project) Series 2001A downgraded to 'A/F1', Stable Outlook, from 'AA+/F1+' Stable Outlook;

--$12,315,000 (Green Waste Recovery Inc. Project) Series 2006A confirmed at 'A/F1'; Rating Outlook revised to Stable from Negative;

--$42,600,000 (The Ratto Group of Companies Inc. Project) Series 2007A confirmed at 'A/F1'; Rating Outlook revised to Stable from Negative.

The rating actions will be in connection with the Nov. 14, 2012 mandatory tender and substitution of the credit support currently provided by the California State Teachers Retirement System (rated 'AA+/F1+, with a Stable Outlook by Fitch) in the form of a confirming letter of credit (LOC) with respect to the series 2001A bonds and Comerica Bank (rated 'A/F1', Negative Outlook) in the form of two separate irrevocable direct-pay LOCs with respect to the series 2006A and series 2007A bonds, in each case with substitute LOCs to be issued by Union Bank, N.A. (rated 'A/F1', Stable Outlook) that will support each series of the bonds.

Pursuant to the substitute LOCs, the bank is obligated to make regularly scheduled payments of principal of and interest on the bonds in addition to payments due upon maturity, acceleration and redemption, as well as purchase price for tendered bonds. The ratings on the respective series of the bonds will expire upon the earliest of: (a) Oct. 31, 2017, the initial stated expiration dates of the respective substitute LOCs, unless such dates are extended; (b) conversion of a respective series of bonds to the term rate mode; (c) any prior termination of a respective substitute LOC; and (d) defeasance of a respective series of bonds. The substitute LOCs provide full and sufficient coverage of principal plus an amount equal to 45 days of interest at a maximum rate of 12% based on a year of 365 days and purchase price for tendered bonds, while in the weekly rate mode. A mandatory tender of the bonds will occur on the substitution date. The Remarketing Agent for the bonds will continue to be Westhoff, Cone & Holmstedt.

Additional information is available at www.fitchratings.com.

Applicable Criteria and Related Research:

--'U.S. Municipal Structured Finance Rating Criteria', Feb. 28, 2012;

--'Rating Guidelines for Letter of Credit-Supported Bonds', June 20, 2012.

Applicable Criteria and Related Research:

U.S. Municipal Structured Finance Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=672570

Rating Guidelines for Letter of Credit-Supported Bonds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=681737

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