Show ip route "L - Local"

Gents,

While troubleshooting a routing issue at work (MPLS VPN environment) I ran accross a /32 route tagged as L - Local.  It was being advertised by the CE; but what I didn't understand is that the /32 was really part of a /30 between the PE and CE link.

Exampls

192.168.0.0/30
[CE].1 ---------.2(VRF A)[PE]

The route table showed:
L  192.168.0.2/32 via 192.168.0.1

This looks like a host route to me, but the ptp link is a frame interface, and I thought only ppp advertised local host interfaces?  What is a "Local" route and why would it be re-advertised back to me?

Is there any relation to the interface being associated to a VRF?

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