A series of putable floating option tax-exempt receipts issued by the Los Angeles Department of Water and Power was placed on short-term negative rating watch by Fitch Ratings in the wake of Moody’s Investors Service downgrade Wednesday’s of Bank of America.

LADWP’s water system revenue bonds, which were deposited in the MT-734 series trust, maintained a long-term rating of AA-plus and stable outlook, the agency said.

The F1-plus rating assigned to each P-FLOATs series is based on the liquidity facility provided by Bank of America NA rated A-plus and F1-plus by Fitch, with both the long- and short-term ratings on negative watch.

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