A swap that the San Diego Regional Transportation Commission signed this month is considered so airtight even the rating agencies view the underlying variable-rate bonds as a fixed-rate obligation.

In a rare move, Moody's Investors Service and Standard & Poor's Corp. decided the commission had built enough protections against a swap collapse into its $142 million deal that the issuer could consider the bonds fixed for purposes of funding its debt service reserve and meeting its additional bonds test.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.