DIA Bonds Still AAA

Fitch Ratings has confirmed the rating of AAA/F-1 assigned to Denver International Airport’s $148.5 million of system revenue bonds under a new standby bond purchase agreement with Morgan Stanley Bank.

The long-term triple-A rating is based on debt service insurance by Assured Guaranty Corp., while the F-1 rating is based on liquidity support from Morgan Stanley, the agency said.

Amendments to the standby bond purchase agreement took effect last week, obligating the bank to purchase bonds tendered during any daily, weekly, or monthly interest rate mode. Immediate termination events under the agreement will be tied to credit events affecting both the airport system and Assured Guaranty.

Both subseries of bonds — $74.2 million of Series 2007G1 and $74.3 million of Series 2007G2 — are subject to mandatory tender and conversion to a daily interest rate mode on Friday.

The City and County of Denver issues debt for DIA under its own name.

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Transportation industry
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