Fitch Rates District of Columbia $125,775,000 Multimodal 2008B GO Refunding Bonds...

Fitch Rates District of Columbia $125,775,000 Multimodal 2008B GO Refunding Bonds 'AA/F1+'

NEW YORK--(Business Wire)--
Fitch assigns an 'AA/F1+' rating to the District of Columbia's
$125,775,000 Multimodal general obligation (GO) refunding bonds series
2008B (the bonds). The rating is based on the support provided by a
direct-pay letter of credit (LOC) issued by Bank of America, N.A. (the
bank), securing the bonds. The bank's long-term 'AA' rating is on
rating watch negative as of March 7, 2008. The bank is obligated to
make payments of principal and interest on the bonds upon maturity,
acceleration and redemption, as well as the purchase price for
tendered bonds.

The rating will expire upon the earliest of: May 21, 2011, the
stated expiration date of the LOC, unless such date is extended; any
prior termination of the LOC; and defeasance of the bonds. The LOC
provides full coverage of principal plus an amount equal to 48 days'
interest at a maximum rate of 12% based on a 365-day year and purchase
price for tendered bonds. The Remarketing Agent for the bonds is Banc
of America Securities LLC.

The bonds initially bear interest at the weekly interest rate, but
may be converted to daily, or term rates. While Bonds bear interest in
the weekly or daily mode, interest payments are the first day of each
month, commencing June 2, 2008. Bondholders may tender their bonds on
any business day, provided the trustee is given prior notice of the
purchase demand. The bonds are subject to mandatory tender on any
conversion date, the fifth business day prior to the stated expiration
or termination date of the LOC (unless the LOC has been extended or an
alternate LOC has been delivered), on the effective date of an
alternate LOC and, during the weekly and daily rates, on any interest
payment date selected by the bank or District of Columbia. Optional
and mandatory redemption provisions also apply to the bonds.

Bond proceeds will be used to refund the District of Columbia's
outstanding $125,775,000 Multimodal general obligation bonds, series
2002A (Auction Rate Securities).

Fitch's rating definitions and the terms of use of such ratings
are available on the agency's public site, www.fitchratings.com.
Published ratings, criteria and methodologies are available from this
site, at all times. Fitch's code of conduct, confidentiality,
conflicts of interest, affiliate firewall, compliance and other
relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings, New York
Kevin J. Corrigan, 212-908-9156
or
Media Relations:
Cindy Stoller, 212-908-0526

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