Standard&Poor's Ratings Services assigned its 'A-1' rating to Austin, Texas' combined utility system commercial paper (CP) notes, series A. The rating is based on a direct-pay letter of credit (LOC) issued on a several but not joint basis by JPMorgan Chase Bank N.A. (AA-/A-1+), Bank of America N.A. (A+/A-1), and State Street Bank and Trust Co. (AA-/A-1+). The LOC is sized to cover $300 million of principal plus up to 270 days of interest coverage at a 15% interest rate. The issuing and paying agent cannot issue CP in an amount that would exceed the amount available under the LOC. The LOC will expire on March 28, 2011, and the CP will mature no more than 270 days
