Moody's rates District of Columbia utility bonds A1

Moody's Investors Service said it assigned an A1 rating to the District of Columbia Water and Sewer Authority's $310 million public utility subordinated-lien revenue refunding bonds, series 2008 A. The outlook is stable.

Sale of the bonds is expected on April 7.

Moody's also affirmed its outstanding ratings on the authority's debt, including the Aa3 rating on its outstanding senior-lien public utility revenue bonds.

Proceeds will be used to refund all of the authority's outstanding series 2004 subordinate-lien bonds and a portion of its subordinate-lien taxable revenue bonds, series 2007 B. The refunded bonds are auction-rate securities and are being refunded due to disruptions in the auction-rate securities market.

The authority expects to issue subordinate-lien variable-rate demand bonds, series 2008 B, to refund the remainder of the 2007 B auction-rate bonds to eliminate its remaining exposure to the auction-rate market.

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