MOODY'S EXTENDS WATCHLIST FOR POSSIBLE DOWNGRADE ON AMERICAN SOCIETY FOR TECHNION'S (NY) Baa2 UNDERLYING RATING

Posted on: June 13, 2011, 5:43 pm

NEW YORK, Jun 13, 2011 -- Moody's Investors Service has extended its Watchlist for possible downgrade on the American Society for Technion's (ATS) Baa2 underlying rating. The rating action affects $11.7 million of Series 2003 bonds which were issued through the New York City Industrial Development Agency. The bonds are also currently rated Baa1/SG based on the joint support of ATS and a letter of credit (LOC) from Allied Irish Banks (rated Ba2). The rating remains on Watchlist for potential downgrade reflecting the heightened liquidity risks associated with the ATS's variable rate demand debt and failure of ATS to secure a replacement liquidity facility. We expect to review the rating again within 90 days. Over the next 90 days, we plan to focus on management's implementation of a plan to refund or retire the debt and to regularly monitor the Society's unrestricted cash position...

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