News Column

Fitch to Upgrade L-T & S-T Ratings to 'AA-/F1+' on $50MM Clark Co, NV IRBs, Ser 2003A

July 28, 2014



NEW YORK--(BUSINESS WIRE)-- On the effective date of July 30, 2014, Fitch Ratings will upgrade the long- and short-term ratings to 'AA-/F1+', Stable Outlook from 'A+/F1', Stable Outlook assigned to the $50,000,000Clark County, Nevada Industrial Development revenue bonds (Southwest Gas Corporation Project) series 2003A. The rating action is in connection with: (i) the substitution of the irrevocable direct-pay letter of credit (LOC) previously provided by JPMorgan Chase Bank, N.A. (rated 'A+/F1' Stable Outlook) with a substitute LOC to be issued by Wells Fargo Bank, N.A. (Wells Fargo, rated 'AA-/F1+', Stable Outlook); and (ii) the mandatory tender of the bonds, which will occur on July 30, 2014.

KEY RATING DRIVERS:

On the effective date, the rating will be based on the support provided by the substitute LOC issued by Wells Fargo.

Pursuant to the substitute LOC, the bank is obligated to make regularly scheduled payments of principal of and interest on the bonds in addition to payments due upon maturity, acceleration and redemption, as well as purchase price for tendered bonds. The rating will expire upon the earliest of: (a) July 28, 2017, the initial stated expiration date of the substitute LOC, unless such date is extended; (b) conversion to any interest rate mode other than daily or weekly; (c) any prior termination of the substitute LOC; and (d) defeasance of the bonds. The Wells Fargo LOC provides full and sufficient coverage of principal plus an amount equal to 52 days of interest at a maximum rate of 12% based on a year of 365 days and purchase price for tendered bonds, while in the daily and weekly rate modes. The Remarketing Agent for the bonds is Wells Fargo Securities LLC.

RATING SENSITIVITIES:

The rating is exclusively tied to the short- and long-term rating that Fitch maintains on the bank providing the substitute LOC and will reflect all changes to that rating.

Additional information is available at www.fitchratings.com.

Applicable Criteria and Related Research:

--'U.S. Municipal Structured Finance Criteria', Feb. 24, 2014;

--'Rating Guidelines for Letter of Credit-Supported Bonds and Commercial Paper', June 2, 2014.

Applicable Criteria and Related Research:

U.S. Municipal Structured Finance Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=736618

Rating Guidelines for Letter of Credit-Supported Bonds and Commercial Paper

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749431

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.



Fitch Ratings

Primary Analyst

Janet Rosen, +1 312-368-3172

Consulting Analyst

Fitch Ratings, Inc.

70 West Madison Street

Chicago, IL 60602

or

Secondary Analyst

Trudy Zibit, +1 212-908-0689

Managing Director

or

Committee Chairperson

Linda Friedman, +1 212-908-0727

Senior Director

or

Media Relations:

Elizabeth Fogerty, +1 212-908-0526

elizabeth.fogerty@fitchratings.com

Source: Fitch Ratings


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