The long-term component of 'AAA/A-1+' rating on Austin, Texas' water and wastewater system variable-rate revenue refunding bonds series 2004 is based on a bond insurance policy provided by Financial Security Assurance Inc. ('AAA'). The bond insurance covers principal of, and interest on, the bonds for regularly scheduled debt service payments. The short-term component of the rating is based on a SBPA provided by Landesbank Baden-Wuerttemberg ('AAA/A-1+') for the daily and weekly modes. The SBPA provides coverage for the purchase price of unremarketed tendered bonds, including up to 35 days' interest at an interest rate of 12% annually. The SBPA is scheduled to terminate on Dec. 29, 2015. For the complete rationale on the 'A' rating on the bonds, which subsequently
