2008-05-07 23:43:10 -

- Fitch Ratings confirms the 'F1+' rating assigned to the City of San Jose (the city), California, San Jose International Airport Subordinated Commercial Paper program (CP program), consisting of series A (non-AMT), B (AMT) and C (taxable) notes, and assigns a 'F1+' rating to the three newly issued series of subordinated CP notes, Series D (Non-Amt), E (AMT) and F

(Taxable), which separately and all together comprise the "Notes". The confirmation for the Series A, B and C Notes is in connection with new resolutions of the City which increase the maximum amount of Notes permitted to be issued under the CP program from $450 million to $600 million, including any issuance of D, E and F Notes. The Series A, B and C Notes continue to be supported by the two LOCs issued severally by JPMorgan Chase Bank, National Association, Bank of America, N.A., and Dexia Credit Local, acting through its New York Branch, one of which supports the Series A and B Notes and the other, the Series C Notes. The rating on the series A, B and C Notes expires on the earlier of December 2, 2010, the current expiration date of the related LOCs, unless such date is extended, or any prior termination of these LOCs.

The new series D, E and F notes will be supported by a letter of credit (LOC) issued by Lloyds TSB Bank plc, acting through its New York Branch (Lloyds). While the initial stated amount of the Lloyds LOC is set at zero, the maximum stated amount to which it can be increased is $140,000,000. The effective date of the Lloyds LOC will be May 8, 2008 and on such date, the 'F1+' rating assigned to the Series D, E and F Notes will be based on the support of the Lloyds LOC. This rating will expire on May 7, 2011, the stated expiration date of this LOC, unless such date is extended, or upon any prior termination of this LOC. Citigroup Global Markets Inc., Lehman Brothers Inc and Morgan Stanley & Co. Incorporated are the dealers for the Notes.

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
Trudy Zibit, 1-212-908-0689
Cindy Stoller, +1-212-908-0526 (Media Relations)