SAN FRANCISCO - Los Angeles plans to refund its Ambac Assurance Corp.-insured variable-rate demand bonds after seeing rates surge in response to the insurer's credit woes.

The nation's second-biggest city is refinancing $235.5 million of Los Angeles Convention and Exhibition Center Authority lease revenue bonds issued in 2003 because interest rates on the debt has surged since Ambac lost its triple-ratings from the three major rating agencies.

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