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Merrill Lynch

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Merrill Lynch
~Mell'lI'm Lynch


Global [Viarkets & Investment Banking







May 1, 2008







Mr. Michael Belsky Ms. Gail Sussman Mr. William Montrone

Group Managing Director Group Managing Director Head of U.S. Public Finance

U.S. Public Finance Public Finance Department

Fitch Ratings Moody's Investors Service Standard & Poor's

70 W. Madison Street 250 Greenwich Street 55 Water Street

Chicago, IL 60602 New York, NY 10007 New York, NY 10041



Dear Mr. Belsky, Ms. Sussman, and Mr. Montrone:



I am writing to express my endorsement ofthe efforts led by municipal issuers to encourage the

creation of new standards for rating municipal bonds. Municipal bonds are held to a much higher

standard than corporate bonds as your own default studies demonstrate. In an increasingly global

capital market this unfairly penalizes municipal credits over their taxable counterparts. I strongly

believe that adoption of a global corporate ratings approach for municipalities is prudent and will

enhance efficiency in the municipal market and urge you to take steps to implement such a

program.



Please contact me if you have questions or if I can be of assistance in your efforts.



Thank you.







Ed J. Sisk

Managing Director

Municipal Markets







cc: The Honorable Bill Lockyer, Treasurer, State of California









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