PRESS RELEASE: Moody's Affirms P-1 Letter Of Credit-Backed Rating On The Los Angeles County Metropolitan Transportation Authority Second Subordinate Sale Tax Revenue Commercial Paper Notes, Series A-T-Bb And Series A-Te-Bb

The following is a press release from Moody's Investors Service: $350 MILLION MAXIMUM PROGRAM SIZE. THE RATING IS BASED ON A SUBSTITUTE LETTER OF CREDIT PROVIDED BY BARCLAYS BANK PLC. Los Angeles County Metro. Transp. Auth., CA Barclays Bank PLC Fully Supported California NEW YORK, June 29, 2010 -- Moody's has affirmed the rating of P-1 on the Los Angeles County Metropolitan Transportation Authority Second Subordinate Sales Tax Revenue Commercial Paper Notes, Series A-T-BB and Series A-TE-BB (the Notes) in conjunction with the substitution of the letters of credit currently provided by Dexia Credit Local and BNP Paribas with a new direct pay letter of credit (LOC) provided by Barclays Bank PLC (the Bank) on the effective date of the substitute letter of credit. The rating on Series A-T-BB and Series A-TE-BB reflects the credit quality of the Bank, and a transaction structure which ensures timely payment of principal and interest when due. The rating will expire upon the stated expiration date of the letter of credit (January 31 , 2012) or upon any earlier termination of the letter of credit. The Series A commercial paper program is being redesignated into subseries to reflect dedicated banks for each subseries as well as whether each subseries is taxable or tax-exempt. Barclays Bank PLC is rated Aa3 for long-term bank deposits and P-1 for short-term bank deposits by Moody's. THE COMMERCIAL PAPER NOTES The substitution of the letters of credit is being accomplished in accordance with the First Supplemental Subordinate Trust Agreement, dated January 1, 1991, which authorizes the substitution of the letter of credit at any time and requires prior written confirmation from each rating agency then rating the Notes that the current rating on the Notes will not be reduced or withdrawn as a result of a substitution. The Trustee, U.S. Bank N.A., will issue Notes upon receipt of issuance instructions from either the issuer, Los Angeles County Metropolitan Transportation Authority, or the commercial paper dealers (Barclays Capital, Goldman, Sachs & Co. and RBC Capital Markets) upon behalf of the Authority. Each Note will be of a denomination equal or greater than $100,000; will mature no more than 270 days from issuance, and in no event can mature later than the fifth day prior to the termination date of the letter of credit. The Notes may be interest bearing or issued at a discount. The maximum program size is $350 million principal of Notes. The LOC is currently sized for $137.77 million of principal plus 270 days' interest at a maximum rate of 12%. No Notes may be issued if such issuance would cause the aggregate principal amount of Notes outstanding, including Notes at maturity if issued at a discount, plus accrued interest to exceed the amount provided for under the letter of credit.. The Trustee is required to draw on the letter of credit to make all payments of principal and interest when due at maturity. The Notes are not subject to redemption prior to maturity. The letter of credit bank will be reimbursed for each draw with the proceeds from the sale of rollover notes, or with funds from the Authority. LETTER OF CREDIT The letter of credit covers full principal plus 270 days of interest at the maximum rate of 12%, and will be available to make payments of principal plus accrued interest on the Notes. Conforming draws for the payment of principal and interest received by the Bank by 11:30 a.m., New York time, on a business day, will be honored by 2:30 p.m., New York time, on the same business day. The LOC will be automatically reinstated upon receipt by the Bank of reimbursement proceeds from the Trustee, unless the Trustee receives a notice from Bank of the occurrence of an event of default under the Reimbursement Agreement with instructions to cease issuing Notes or to make a final drawing for all Notes outstanding (a Final Drawing Notice). Immediately following receipt of a final drawing notice, the Trustee shall draw on the LOC for all Notes outstanding and shall apply the same to the payment of principal and interest on the Notes as such Notes mature. The LOC expires on the earliest of (i) the stated expiration date, January 31, 2012; (ii) the date the Bank receives notice from the Trustee that all outstanding Notes have been paid in full, (iii) the date the Bank receives notice from the Trustee that a substitute LOC has been accepted and all required drawings have been honored, (iv) the date the Bank receives notice from the Trustee that the Authority voluntarily terminates the LOC, (v) the date which is 10 days following the Trustee's receipt of a final drawing notice, and (vi) the date the Bank honors a draw on the LOC in conjunction with Trustee's receipt of a final drawing notice. The letter of credit is subject to the International Standby Practices 1998, International Chamber of Commerce Publication No. 590 (the ISP98) as written. METHODOLOGY The principal methodology used in rating this issue was Moody's Rating Methodology on Letter of Credit Supported Municipal Commercial Paper Transactions, published in December 2008 which is available on www.moodys.com in the Rating Methodologies sub-directory under the Research & Ratings tab. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found in the Rating Methodologies sub-directory on Moody's website. The last rating action occurred on July 12, 2005, when the P-1 rating on the Notes was confirmed. ANALYSTS: Coby Kutcher, Analyst, Public Finance Group, Moody's Investors Service Robert Azrin, Senior Credit Officer, Public Finance Group, Moody's Investors Service CONTACTS: Journalists: (212) 553-0376 Research Clients: (212) 553-1653 Copyright 2010 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved. 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