The bonds bear interest only for the first 15 years with principal amortization beginning in 2027. The series 2011 liberty bonds are fixed-rate bonds and mature in 2051 with an optional 10-year call at par. The 'A' rating reflects the financial support provided to the credit from the
The bonds were raised in order to partly finance the construction of Tower 4 as part of PANYNJ's overall objective to complete the redevelopment of the World Trade Center site.
KEY RATING DRIVERS
STRONG SUPPORTING ENTITIES: Strong financial support is offered to bondholders by highly rated entities in PANYNJ and NYC.
VISIBLE AND CRITICAL PROJECT: The project is highly visible and critical with broad based political support.
SPECIAL OBLIGATIONS OF PANYNJ: Tower 4 (T4) bond payments are special obligations of PANYNJ and contractual in nature, which Fitch views as weaker than direct debt of the PANYNJ.
CITY LEASE PAYMENTS SUBJECT TO APPROPRIATION: NYC's rental payment is subject to appropriation through agency budgets and is treated in a manner similar to a 'space lease' obligation versus a debt obligation in Fitch's analysis.
Positive or Negative: Improvement or decline in the general credit profile of either or both PANYNJ and NYC.
The T4 facility and the site upon which it is being constructed are owned by PANYNJ, a municipal corporate instrumentality and political subdivision of the states of
The liberty bonds are secured by T4 annual debt service payments made by PANYNJ in the amount of annual debt service less monthly fixed rent amounts payable by NYC under the city space lease dated
Additional information is available at 'www.fitchratings.com'.
--'Rating Criteria for Infrastructure and Project Finance',
--'U.S. Local Government Tax-Supported Rating Criteria',
Rating Criteria for Infrastructure and Project Finance
U.S. Local Government Tax-Supported Rating Criteria
Source: Fitch Ratings
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