The 'A-1' short-term rating on Charlotte, N.C.'s water and sewer system commercial paper revenue bond anticipation notes (BANs), series 2004, is based on the City of Charlotte's ('AAA' water and sewer rating) ability to pay the interest that is due on the maturity date, and on the ability of the provider of the standby note purchase agreement (SNPA), Wachovia Bank N.A. ('A-1'), to pay the principal that is due on the maturity date. The initial expiration date of the SNPA is Aug. 4, 2005. The initial SNPA includes automatic termination events that enable the SNPA provider to terminate its commitment to provide principal coverage on unremarketed tendered Roll-Over Notes, without prior notice to the holders. Such events include, but are
