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Fitch Upgrades Southern CA Public Power Auth 2007A&B Gas Project Revs to 'BBB+'; Outlook to Stable

  Fitch Upgrades Southern CA Public Power Auth 2007A&B Gas Project Revs to
  'BBB+'; Outlook to Stable

Business Wire

NEW YORK -- September 21, 2012

Fitch Ratings has upgraded the Southern California Public Power Authority's
gas project revenue bonds series 2007A and 2007B to 'BBB+' from 'BBB'. The
Rating Outlook is revised to Stable from Positive.

Today's rating action follows Fitch's upgrade of American International Group
Inc.'s (AIG) Issuer Default Rating to 'BBB+' with a Stable Outlook on Sept.
11, 2012. AIG acts as a guarantor to the commodity swap provider in the
transaction.

AIG also guarantees the obligations of subsidiaries providing guaranteed
investment contracts for investment returns on the debt service fund and on
the balance in the working capital account. However, these obligations have
been collateralized.

The long-term ratings and Outlook on the above prepaid gas bonds are
determined by Fitch's assessment of the transaction structure and the credit
quality of entities involved in the transaction. Bond proceeds were used to
fund the prepayment of natural gas supplies between the issuer and the gas
supplier, J. Aron & Co.

WHAT COULD TRIGGER A RATING ACTION

CHANGE IN COUNTERPARTY RATINGS: The long-term rating on the bonds will
continue to be determined by Fitch's assessment of the transaction structure,
the role of each counterparty in the structure, and their credit quality.

Additional information is available at www.fitchratings.com. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Applicable Criteria and Related Research:
--'Criteria for Rating Prepaid Energy Transactions', dated Aug. 7, 2012;
--'Counterparty Criteria for Structured Finance Transactions', dated May 30,
2012;
--'U.S. Municipal Structured Finance Criteria', dated Feb. 28, 2012;
--'Prepay Gas Transactions: Focus on Counterparty Risk,' dated Feb. 23, 2009;
--'Southern California Public Power Authority (CA)' dated Oct. 1, 2007.

Applicable Criteria and Related Research:
Criteria for Rating Prepaid Energy Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=684588
Counterparty Criteria for Structured Finance Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=678938
U.S. Municipal Structured Finance Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=672570
Prepay Gas Transactions: Focus on Counterparty Risk
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=427254
Southern California Public Power Authority (CA)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=344262

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS.
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING
DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S
PUBLIC WEBSITE WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA AND
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL,
COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM
THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Contact:

Fitch Ratings
Primary Analyst:
Dennis Pidherny, +1-212-908-0738
Senior Director
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst:
Bhala Mehendale, +1-212-908-0520
Director
or
Committee Chairperson:
Chris Hessenthaler, +1-212-908-0773
Senior Director
or
Media Relations:
Brian Bertsch, +1-212-908-0549
brian.bertsch@fitchratings.com
 
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