The 'AA/A-1+' rating on Louisiana Public Facilities Authority's equipment and capital facilities pool loan program is based on the application of joint and several criteria based on the rating of a fronting bank LOC provided by Hibernia National Bank of New Orleans ('BBB+/A-2') and Branch Banking Trust Co. ('A+/A-1'). The fronting LOC provides coverage for all principal and interest bond payments, including the purchase price of tendered bonds. The LOC covers 106 days' interest at the maximum rate of 12%. The confirming LOC, which also covers 106 days' interest at 12%, guarantees payment in the event that the fronting bank does not honor the LOC. The confirming LOC expires on Dec. 22, 2005, or due to an earlier termination event
