WASHINGTON - The District of Columbia plans to rid itself of costly variable-rate demand obligations insured by downgraded bond insurers when it brings about $125 million of VRDOs to market on Sept. 3.

The deal will replace insurance from MBIA Insurance Corp. on the general obligation refunding bonds with a direct-pay letter of credit from Dexia Credit Local, district finance officials said last week.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.