OREANDA-NEWS. Fitch Ratings assigns a rating of 'F1' to the Municipal Improvement Corporation of Los Angeles lease revenue commercial paper (CP) (Los Angeles Convention Center) tax-exempt series A-1 and taxable series B-1 notes (notes).

KEY RATING DRIVERS
The rating is based on the support provided by an irrevocable direct-pay letter of credit (LOC) issued by The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU; rated 'A/F1', Stable Outlook), acting through its New York branch, which has a stated expiration date of Nov. 16, 2018, unless extended or earlier terminated. The BTMU LOC stated amount of $115,500,000 provides coverage for a combined amount of principal and interest due upon maturity of both series of notes.

U.S. Bank National Association, as the Issuing and Paying Agent (IPA) for the notes, is directed to request an advance under the LOC to pay principal and interest on maturing notes. The LOC provides sufficient coverage for note issuance up to $115,500,000 inclusive of interest coverage.

Series A-1 notes will be issued at par, with interest due at maturity. Series B-1 notes may be issued at par or at a discount. Following the occurrence of an event of default under the LOC reimbursement agreement, BTMU may direct the IPA to immediately stop the issuance of any additional notes. In such event, the LOC will expire after all the notes supported by such LOC mature and have been paid from funds drawn on the LOC. In addition, BTMU may direct the IPA to make a final drawing for the principal and interest to accrue on all outstanding notes. The LOC will terminate 15 days after receipt by the IPA of the final drawing notice or when BTMU honors such final drawing, if earlier. The dealers for the notes are J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC.

RATING SENSITIVITIES
The rating is exclusively tied to the short-term rating that Fitch maintains on the bank providing the LOC and will reflect all changes to that rating.