Rating Action: Moody's affirms P-1 LOC-backed Los Angeles Dept. of Airports LAX Subordinate Revenue CP NotesGlobal Credit Research - 18 Aug 2022New York, August 18, 2022 -- Moody's Investors Service ("Moody's") has affirmed the P-1 letter of credit-backed ratings on the Department of Airports of the City of Los Angeles, CA (the Department) Los Angeles International Airport Subordinate Revenue Commercial Paper Notes Subseries A-1 through A-3 (Non-AMT), Subseries B-1 through B-3 (AMT), Subseries C-1 through C-3 (Taxable) and Subseries D-1 through D-3 (collectively the Notes). The Subseries A-1, B-1, C-1 and D-1 Notes will be supported by an LOC provided by PNC Bank, N.A. (PNC) which will replace the current LOC from Sumitomo Mitsui Banking Corporation.  The Subseries A-2, B-2, C-2 and D-2 Notes continue to be supported by an LOC provided by Barclays Bank PLC (Barclays). The Subseries A-3, B-3, C-3 and D-3 Notes continue to be supported by an LOC provided by Bank of America, N.A. (BofA).RATINGS RATIONALEUpon the effective date of the LOC substitution for the Subseries A-1, B-1, C-1 and D-1 Notes  and the amendments to the reimbursement agreements and the LOCs for the Subseries A-2, A-3, B-2, B-3, C-2, C-3, D-2 and D-3 Notes, currently scheduled for August 25, 2022, the ratings on the Notes will be based on the LOCs; the structure and legal protections of the transactions which provide for timely payment of principal and interest to Note holders; and, Moody's evaluation of the credit quality of each LOC bank. Moody's short-term counterparty risk assessment (CR Assessment) of each LOC bank is P-1(cr).FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS• Not applicableFACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS• Moody's downgrades the short-term CR Assessment of the applicable LOC bankThe trust indenture authorizes a total of up to $500 million of all sub-series of Notes. In addition, the aggregate amount of each Subseries of Notes outstanding shall not exceed the aggregate amount available to be drawn under the applicable LOC. The Trustee is prohibited from issuing Subseries of Notes if such issuance would result in the aggregate principal amount of such Subseries of Notes outstanding plus accrued interest exceeding the amount provided for under the applicable LOC. All Notes issued shall mature no later than 270 days from the date of issuance and the business day prior to the applicable LOC expiration date. The Trustee shall cease issuing the applicable Subseries of Notes following receipt of notice from the applicable LOC Bank directing that the Trustee to cease issuing Notes.The Trustee shall draw on each LOC in accordance with its terms on each Note maturity date to pay the principal and interest on the maturing Notes. The Notes are not subject to redemption or acceleration prior to maturity.Each LOC is sufficiently sized to cover principal plus 270 days of interest at 12% the maximum rate applicable for all Notes. The LOCs provided by PNC, Barclays and BofA are sized to cover principal of $100,000,000, $300,000,000 and $100,000,000, plus the aforementioned interest, respectively.  Each LOC shall terminate upon the earliest to occur of: (i) the stated expiration date, August 24, 2027 (PNC), August 24, 2026 (Barclays and BofA); (ii) the date of payment of a drawing, which when added to all other drawings equals the stated amount of the LOC, (iii) the date on which a substitute LOC has been issued, provided that any drawing presented on or prior to such date has been honored, (iv) the date on which the applicable bank receives notice from the Trustee stating that no Notes supported by such LOC remain outstanding and the Department does not intend to issue any such additional Notes and desires to terminate the LOC, (v) the earlier of (a) the fifteenth (15th) calendar day following the date on which the Trustee receives a Tier One Final Drawing Notice from an LOC bank, and (b) the date on which the drawing in connection with the Trustee's receipt of such Tier One Final Drawing Notice is honored, and (vi) the earlier of (a) the Tier Two Termination Date, and (b) the New Tier Two Termination Date, provided that in either case the drawing for Notes maturing on such termination date has been honored.The Department may provide a substitute LOC provided that the applicable outstanding Notes which are supported by such LOC must mature on or prior to the effective date of the substitute letter of credit.The principal methodology used in these ratings was Guarantees, Letters of Credit and Other Forms of Credit Substitution Methodology published in July 2022 and available at https://ratings.moodys.com/api/rmc-documents/386295.  Alternatively, please see the Rating Methodologies page on https://ratings.moodys.com for a copy of this methodology.REGULATORY DISCLOSURESFor further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found on https://ratings.moodys.com/rating-definitions.For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating.  For further information please see the issuer/deal page for the respective issuer on https://ratings.moodys.com.For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.The ratings have been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.These ratings are solicited. Please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website https://ratings.moodys.com.Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://ratings.moodys.com/documents/PBC_1288235.The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the EU and is endorsed by Moody's Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody's office that issued the credit rating is available on https://ratings.moodys.com.The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the UK and is endorsed by Moody's Investors Service Limited, One Canada Square, Canary Wharf, London E14 5FA under the law applicable to credit rating agencies in the UK. Further information on the UK endorsement status and on the Moody's office that issued the credit rating is available on https://ratings.moodys.com.Please see https://ratings.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.Please see the issuer/deal page on https://ratings.moodys.com for additional regulatory disclosures for each credit rating. Jacek Stolarz Asst Vice President - Analyst Public Finance Group Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. 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