Fitch Ratings assigns a rating of 'AAA/F1' with a Stable Outlook to the Key Rating Drivers
In a release on
The SBPA is sized to cover the payment of the principal component of purchase price plus an amount equal to 35 days of interest calculated at a maximum rate of 9 percent based on a 365 day year which is sufficient for tendered bonds in the daily, weekly, and two- day rate mode in the event that the proceeds of a remarketing of the bonds are insufficient to pay the purchase price following a mandatory or optional tender. The SBPA will expire upon the earliest of:
The bonds will be issued in the daily rate mode, but may be converted to a weekly, two-day, commercial paper, indexed, term, stepped coupon, auction or fixed rate. While bonds bear interest in the daily, weekly and two-day modes, interest is paid on the first business day of each month, commencing
Funds drawn under the SBPA are held uninvested and are free from any lien prior to that of the bondholders. The bonds are subject to mandatory tender: (1) upon conversion of the interest rate; (2) upon substitution, unless rating confirmation is delivered by Fitch; (3) upon expiration or termination of the SBPA; and (4) following the receipt of written notice from the bank of an event of default under the SBPA, directing such mandatory tender. Optional and mandatory redemption provisions also apply to the bonds.
Bond proceeds will be used to finance capital projects for the City. For more information, see Fitch's press release dated
The short-term rating reflects the short-term rating that Fitch maintains on the bank providing liquidity support and will be adjusted upward or downward in conjunction with the short-term rating of the bank and, in some cases, the long-term rating of the bonds. The long-term rating is exclusively tied to the creditworthiness of the TFA and will reflect all changes to that rating.
Additional information is available at fitchratings.com.
--'U.S. Municipal Structured Finance Rating Criteria' (
--'Rating Guidelines for Variable-Rate Demand Obligations and Commercial Paper Issued with External Liquidity Support' ( January 27).
U.S. Municipal Structured Finance Rating Criteria - Effective
Rating Guidelines for Variable-Rate Demand Obligations and Commercial Paper Issued with External Liquidity Support
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Fitch Ratings assigns a rating of 'AAA/F1' with a Stable Outlook to the
Key Rating Drivers