Fitch Revises Rating on District of Columbia's Multimodal GO VRDOs, Series 2002D...

Fitch Revises Rating on District of Columbia's Multimodal GO VRDOs, Series 2002D to 'AA+/F1+'

NEW YORK--(Business Wire)--
On the effective date of Sept. 3, 2008, Fitch Ratings will raise
the current 'A+' long-term rating assigned to The District of Columbia
(Washington, D.C.) $124,995,000 Multimodal General Obligation (GO)
bonds (Variable Rate Demand Obligations; VRDOs), series 2002D to
'AA+', and will also confirm the short-term 'F1+' rating assigned to
the bonds. The rating actions will be taken in connection with (1) the
release of the MBIA bond insurance policy and the Bank of America,
N.A. liquidity facility currently supporting the bonds, (2) the
provision of substitute credit enhancement in the form of irrevocable
direct-pay letter of credit (LOC), and (3) the remarketing of the
bonds with the support of the LOC issued by Dexia Credit Local, acting
through its New York Branch (Dexia), for the bonds. The remarketing of
the bonds is scheduled to occur on Sept. 3, 2008 and at such time, the
'AA+/F1+' rating assigned to the bonds will be based on the support of
the Dexia LOC. The bonds are subject to mandatory tender on Sept. 2,
2008 in connection with the substitution and remarketing.

Upon remarketing, the bonds will bear interest at a weekly
interest rate mode, but may be converted to a daily, flexible,
auction, term or fixed interest rate mode. The LOC provides full
coverage during the weekly and daily rate modes of principal, plus an
amount equal to 209 days of interest computed at a maximum rate of
12%, based on a year of 365 days, and purchase price for tendered
bonds. The rating will expire on the earliest to occur of: September
3, 2011, the stated expiration date of the LOC, unless such date is
extended; any prior termination of the LOC; or the defeasance of the
bonds. The remarketing agent for the bonds is Lehman Brothers, Inc.

While the bonds bear interest in the weekly rate mode, interest
payments are paid semiannually on each June 1 and December 1. During
the weekly rate mode, bondholders may optionally tender their bonds on
any business day, with the requisite prior notice to the trustee. The
bonds are subject to mandatory tender: (1) on conversion of the
interest rate mode, including conversion on any Variable Rate
Conversion Date, ARS Rate Conversion Date, Flexible Rate Conversion
Date and on any proposed Fixed Rate Conversion Date, all as described
in the bond documents; (2) in the flexible rate, on any Repurchase
Date; (3) on the business date prior to the stated expiration of the
LOC; (4) on the business day preceding the substitution of the LOC;
and (5) not more than 10 days following the trustee's receipt of a
written notice from the LOC provider which states that either (a) the
interest portion of the LOC will not be reinstated because the LOC
provider has not been reimburse for a previous drawing made under the
LOC, or (b) there has been an event of default under the reimbursement
agreement and the interest portion of the LOC is not being reinstated.
Optional and mandatory redemption provisions also apply to the bonds.

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
Steven M. Stubbs, +1-212-908-0676
Media Relations:
Cindy Stoller, +1-212-908-0526

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