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The following is a press release from Fitch Ratings: Fitch Ratings-New York-08 June 2010: Fitch Ratings assigns the following ratings to the City of Houston, Texas' combined utility system commercial paper notes, series B (the notes): --'F1' to the $100,000,000 series B-4; --'F1+' to the $100,000,000 series B-5; and --'F1+' to the $100,000,000 series B-6. The series B program allows for the issuance of notes in the aggregate principal amount not to exceed $700,000,000, in a maximum of seven subseries. On Dec. 4, 2009, Fitch reviewed the series B Program and assigned ratings to the series B-1 ($250,000,000), B-2 ($75,000,000) and B-3 ($75,000,000). On June 8, 2010, the series B-4 ($100,000,000), B-5 ($100,000,000) and B-6 ($100,000,000) will be issued under the same series B Program documents. The 'F1' rating on the series B-4 notes is based on the support of an irrevocable direct-pay letter of credit (LOC) provided by Sumitomo Mitsui Banking Corporation; the 'F1+' rating on the series B-5 notes is based on the support of a LOC provided by Barclays Bank, PLC; and the 'F1+' rating on the series B-6 is based on the support of a LOC provided by Citibank, N.A. The ratings on the notes will expire on the earlier of June 7, 2013, the expiration date of each of the LOCs, unless such date is extended, or upon any prior termination of the a respective LOC. U.S. Bank National Association, as the Issuing and Paying Agent for the notes is directed to request an advance under the appropriate LOC whenever proceeds of the sale of notes are insufficient to pay maturing notes. Each of the LOCs provides coverage for the principal amount of notes and 270 days of interest at 10% based upon a 365 day year. All notes will be issued at par, with interest due at maturity. Following the occurrence of an event of default under the LOCs, the affected LOC provider may direct that no additional notes be issued. Additional information on the commercial paper series b program is available on Fitch's web site at 'www.fitchratings.com'. Applicable criteria available on Fitch's web site at 'www.fitchratings.com': 'U.S. Municipal Structured Finance Rating Criteria', Dec. 17, 2009; 'Rating Guidelines for Commercial Paper Note Programs Issued with External Support', Nov. 11, 2009. Contact: Mario Civico +1-212-908-0796, New York. Media Relations: Cindy Stoller, New York, Tel: +1 212 908 0526, Email: [email protected]. Additional information is available at 'www.fitchratings.com'. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '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. (END) Dow Jones Newswires June 08, 2010 10:27 ET (14:27 GMT)