The long-term rating assigned to the University of Pittsburgh, Pa.'s commonwealth system of higher education university capital project and refunding bonds series A of 2002 is based on the rating of the University of Pittsburgh. The short-term rating is based on a liquidity facility provided by Dexia Credit Local ('AA/A-1+'). The liquidity facility, a standby bond purchase agreement (SBPA) that is scheduled to expire on June 11, 2003, provides coverage for principal and up to 35 days of interest, at a maximum rate of 12%, for the purchase of tendered bonds that are not successfully remarketed. The bonds will initially bear interest in the weekly variable rate mode, but may adjust to other interest rate modes, including daily and CP.
