MOODY'S ASSIGNS MIG 1 RATING TO THE MISSOURI PUBLIC UTILITIES COMMISSION $37 MILLION INTERIM CONSTRUCTION NOTES, SERIES 2010

Posted on: June 24, 2010, 12:01 pm

NEW YORK, Jun 24, 2010 -- Moody's Investors Service has assigned a MIG 1 rating to the $37 million Missouri Public Utilities Commission's Interim Construction Notes, Series 2010. The par amount of the transaction may fluctuate prior to closing depending upon the number of new projects that are included in the Series 2010 financing. The notes are secured by the funds pledged under the trust indenture, which primarily include loan repayments from participating local governments derived from permanent financing received from the United States Department of Agriculture, Rural Development (RD), proceeds of refunding notes issued by the commission for incomplete projects, and any unallocated program note proceeds. The high quality rating reflects Moody's belief that strong liquidity for note repayment is provided by these pledged sources of repayment and legal documents which provide appropriate planning time to issue renewal notes and enhance the overall structure of the note program. Moody's believes the risk that the RD permanent financing commitment will be rescinded due to project abandonment or participant insolvency is low, due to the financial and project feasibility analyses RD applies to each potential borrower prior to committing funds. Further, we believe the commission will continue to have favorable market access for refunding notes due to market recognition of the state's name coupled with the continuation of the RD commitment for permanent financing. The commission was organized under Missouri Revised Statutes - Chapter 70, which provides powers to joint municipal agencies...

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