AIRLINE INDUSTRY INFORMATION-(C)1997-2006 M2 COMMUNICATIONS LTD

Fitch Ratings has assigned an underlying 'A' rating to USD467m Airport Commission, City and County of San Francisco, California, San Francisco International Airport (SFO), issue 33, second series variable-rate revenue refunding bonds consisting of Series A-J.

Issue 33 is reportedly expected to sell via negotiation led by the following underwriters: USD64.0m Banc of America Securities LLC for series A; USD57.2m Bear, Stearns & Co Inc for series B; USD57.2m J P Morgan Securities Inc for series C; USD64.1m Morgan Stanley & Co Inc for series D; USD57.0m UBS Financial Services Inc for series E; USD60.9m Citigroup Global Markets Inc for series F; USD31.0m E J De La Rosa & Co Inc for series G; USD20.2m Jackson Securities LLC for series H; USD27.8m Banc of America Securities LLC for series I; and USD27.8m Morgan Stanley & Co Inc for series J.

Fitch also said that the company expects to assign issue 33 both a long-term rating, based on the provision of a municipal bond insurance policy by XL Capital Assurance Inc, and a short-term rating, based on a standby bond purchase agreement to be provided by DEPFA Bank Plc nearer the scheduled issue date on 15 February 2006. The rating outlook is stable, reflecting recent passenger growth, the effective use of operating and maintenance cost control mechanisms, passenger facility charge (PFC) receipts to offset debt service, and the increase in non-airline revenue that results in a more competitive airline cost structure at the airport.

Fitch has also affirmed the 'A' rating on approximately USD3.9bn outstanding second series revenue bonds with a stable outlook.

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