KEY RATING DRIVERS
The transaction represents a pass-through of all proceeds received in respect of the underlying mortgage revenue bond (MRB) owned by the trust. The rating is based on the credit quality of the MRB.
Proceeds from the certificate issuance were used to purchase the MRB issued by the
Payments on the certificates will be made monthly and will consist of interest and principal payments received from the underlying MRB. The underlying MRB pays a coupon of 4.050%. The certificates will receive interest equal to 4.00% per annum. The transaction is structured to pass-through all interest and principal proceeds after paying a 0.050% (p.a.) trustee fee and any extraordinary expenses that are incurred. Extraordinary expenses incurred by the trustee are capped at
The transaction relies, to a lesser extent, on a series of counterparties to perform particular roles, including the trustee (
The transaction is established as a grantor trust for federal income tax purposes. Each beneficial owner of the certificates will be treated for federal income tax purposes as owning an undivided interest in each asset held in the trust. To the extent interest on the underlying MRBs is subject to federal income taxation, the portion thereof received by each beneficial owner of a certificate will also be subject to federal income taxation. Fitch has received and reviewed legal opinions addressing the true sale of the underlying MRBs to the trust, the classification of the trust as a grantor trust for federal income tax purposes, and the enforceability of the transaction documents.
Any rating action on the underlying MRB will directly affect the rating of the certificates. The MRB rating is currently linked to the U.S. sovereign rating, any rating action on the U.S. sovereign rating will directly affect the rating of the certificates. Further, should Fitch's view of the strength of government support for FNMA be reduced or downgraded, the rating of FNMA may be delinked from the U.S. sovereign rating.
The CUSIP for the underlying IHCDA MRB is 454807AE8. For additional details, see 'Fitch Rates Indiana Housing & Community Development Authority's
Additional information is available at 'www.fitchratings.com'.
The sources of information used to assess this rating were the transaction documents provided by the arranger,
--'Global Structured Finance Rating Criteria' (
--'Counterparty Criteria for Structured Finance and Covered Bonds' (
Global Structured Finance Rating Criteria
Counterparty Criteria for Structured Finance and Covered Bonds
Source: Fitch Ratings
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