Fitch Rates New York City Muni Water Finance Auth's Bank Bonds 'AA+'; Outlook Stable

NEW YORK--(BUSINESS WIRE)--Fitch Ratings assigns an 'AA+' rating to bank bonds corresponding to the following series of New York City Municipal Water Finance Authority's (NYW) water and sewer revenue bonds in the event any bonds of the series are converted to bank bonds in the future:

--$100,000,000 water and sewer system second general resolution revenue bonds, adjustable rate fiscal 2008 series BB-3;

--$50,000,000 water and sewer system second general resolution revenue bonds, adjustable rate fiscal 2008 series BB-4.

The Rating Outlook is Stable.

The rating is being assigned in connection with the substitution of an existing standby bond purchase agreement (SBPA). The SBPA currently provided by BNP Paribas (BNP, 'A+/F1+, Stable Outlook) will be replaced by a SBPA to be provided by the Royal Bank of Canada, acting through its WFC, New York Branch (RBC, 'AA/F1+', Stable Outlook) effective Oct. 4, 2012. Fitch has reviewed the terms governing bank bonds specified in the SBPA and believes that the incremental risk associated with bank bonds does not have a material impact on the enterprise system revenue bonds' long-term credit rating.

For more information on Fitch's long-term rating on NYW, see Fitch's press release 'Fitch Rates New York City Muni Water Finance Authority's $458MM Revs 'AA+' dated June 15, 2012 available on Fitch's website at 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'.

The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

In addition to the sources of information identified in Fitch's Tax-Supported Rating Criteria, this action was additionally informed by information from Creditscope, University Financial Associates, S&P/Case-Shiller Home Price Index, IHS Global Insight, Zillow.com, National Association of Realtors.

Applicable Criteria and Related Research:

--'Revenue-Supported Rating Criteria' (June 12, 2012);

--'Water and Sewer Revenue Bond Rating Guidelines' (Aug. 3, 2012);

--'2012 Water and Sewer Medians' (Dec. 8, 2011);

--'2012 Outlook: Water and Sewer Sector' (Dec. 8, 2011).

Applicable Criteria and Related Research:

Revenue-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=681015

U.S. Water and Sewer Revenue Bond Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=684901

2012 Water and Sewer Medians

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=657111

2012 Outlook: Water and Sewer Sector

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=657110

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.