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Fitch Rates East Bay Municipal Utility District, CA Water System Revs 'AA+'; Outlook Stable

SAN FRANCISCO--(BUSINESS WIRE)-- Fitch Ratings assigns its 'AA+' rating to the following water system revenue refunding bonds being issued by the East Bay Municipal Utility District, CA (EBMUD or the district):

--Approximately $191.75 million, series 2012A.

Proceeds of the series 2012A bonds will be used to refund certain outstanding series 2005A and series 2007A bonds for purposes of extending the call date, as agreed upon with the holders of the bonds. The maturity dates (between 2030 and 2037) have not changed.

Fitch also affirms the following outstanding EBMUD ratings:

--$1.44 billion water system revenue bonds, series 2003, 2005A, 2007A, 2007B, 2010A, and 2010B at 'AA+';

--$310.8 million water system SIFMA bonds, series 2009A-1 and 2009A-2 at 'AA+/F1+';

--$312.9 million outstanding subordinate lien extendible commercial paper (CP) notes at 'F1+'.

The Rating Outlook is Stable.

SECURITY

Bonds are payable from net revenues of the water system. Tax receipts are not pledged to bondholders but must be used to pay operating expenditures. The CP notes have a subordinate lien on net water revenues.

For additional information about the rating see Fitch's report titled, 'East Bay Municipal Utility District, CA Water Revenues' dated Oct. 25, 2012.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Additional information is available at 'www.fitchratings.com'.

In addition to the sources of information identified in Fitch's Revenue-Supported Rating Criteria, this action was additionally informed by information from Creditscope.

Applicable Criteria and Related Research:

--'RevenueSupported Rating Criteria' (June 12, 2012);

--'U.S. Water and Sewer Revenue Bond Rating Criteria' (Aug. 3, 2012);

--'Rating U.S. Municipal Short-Term Debt' (Dec. 8, 2011).

Applicable Criteria and Related Research:

Revenue-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=681015

U.S. Water and Sewer Revenue Bond Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=684901

Rating U.S. Municipal Short-Term Debt

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=659234

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Elizabeth Fogerty

+1-212-908-0526

elizabeth.fogerty@fitchratings.com

Primary Analyst

Kathy Masterson

Senior Director

+1-415-732-5622

Fitch, Inc.

650 California Street, 4th Floor

San Francisco, CA 94108

Secondary Analyst

Shannon Groff

Director

+1-415-732-5628

Committee Chairperson

Douglas Scott

Managing Director

+1-512-215-3725

Source: Fitch Ratings