OREANDA-NEWS. On the effective date of April 13, 2016, Fitch Ratings will take the following rating actions on the Los Angeles County Capital Asset Leasing Corporation, lease revenue obligation commercial paper notes, series A and series B (the notes).

--Downgrade the short-term rating on $100,000,000 series A notes to 'F1' from 'F1+';
--Affirm the short-term rating on $200,000,000 series B notes at 'F1+'.

The rating actions are in connection with (i) the substitution of the current irrevocable direct-pay letters of credit (LOCs) provided by JPMorgan Chase Bank, N.A. (rated 'AA-/F1+', Stable Outlook) with a LOC to be provided by Bank of the West (rated 'A/F1', Stable Outlook) for series A, and the current LOC provided by U.S. Bank, National Association ('AA/F1+', Stable Outlook) with a new LOC to be provided by U.S. Bank, N.A. for series B, and (ii) the amendment of the existing program documents.


On the effective date, the ratings will be based on the support provided by two separate irrevocable direct-pay LOCs issued by Bank of the West with respect to the series A notes and U.S. Bank, National Association, with respect to the series B notes. The LOCs will expire on the earlier of April 12, 2019, unless such date is extended, or upon any prior termination of the respective series LOCs.

The notes are being issued in both tax-exempt and taxable form with tax-exempt notes bearing a designation as tax-exempt governmental.

U.S. Bank, National Association will act as the Issuing and Paying Agent (I&PA) for the notes, and as I&PA, is directed to draw under the substitute LOC in order to pay maturing notes. The I&PA is instructed not to issue any notes in a principal amount plus accrued interest that would exceed the amount available under the LOC, which is currently sized at $102,465,754 for series A, and $204,931,507 for series B.

Notes may be issued at par with interest due at maturity, or if issued as taxable notes, at par or at a discount. Following the occurrence of an event of default under a Reimbursement Agreement, the related bank may direct the I&PA to cease issuing any additional notes of the related series, and issue a final drawing notice that instructs the I&PA to draw on the LOC in the amount of the outstanding notes of the related series and any interest to accrue thereon to the maturity date. The proceeds of the draw will be held uninvested by the I&PA and paid to noteholders on the maturity dates of the notes of the related series.

The dealers for the notes are Barclays Capital Inc., Morgan Stanley & Co. LLC, and US Bancorp.


The ratings are exclusively tied to the short-term rating that Fitch maintains on the substitute banks providing the LOCs and will reflect all changes to those ratings.