The 'AAA' long-term rating on the City and County of San Francisco, Calif.'s variable-rate bonds, series 2005 B, C, and D, is based on a bond insurance policy from MBIA ('AAA'), while the short-term rating reflects a standby bond purchase agreement (SBPA) from JP Morgan Chase Bank ('A-1+'). The bonds will be issued in the weekly mode, during which bondholders will have the right to optionally tender their bonds. The SBPA covers bonds while in the daily, weekly or term modes in the event of a failed remarketing. The SBPA covers all principal and interest at the maximum rate of 12% for the length of time that the bonds will accrue interest between interest payment dates in the covered modes.
