Fitch to Confirm 'A+/F1' on NY Lib Dev Corp Bnds (3 World Trade) 2011B-1, -2 & -3 & Rate B-4 'A+/F1'

NEW YORK--()--On the effective date of March 19, 2014, Fitch Ratings will confirm the 'A+/F1', Stable Outlook rating for the New York Liberty Development Corporation multi-modal liberty revenue refunding bonds (3 World Trade Center Project), $11,005,000 series 2011B-1, $1,970,000 series 2011B-2 bonds, $1,670,000 series 2011B-3 bonds in conjunction with a mandatory tender occurring on March 19, 2014. The series 2011B-1, 2011B-2 and 2011B-3 bonds are being remarketed with new LOCs from JPMorgan Chase Bank, N.A. On that date, Fitch will also assign an 'A+/F1', Stable Outlook rating to the $1,820,000 series 2011B-4 bonds (originally a portion of the series 2011A bonds), which are being redesignated and remarketed with an LOC from JPMorgan Chase Bank, N.A. on that date.

KEY RATING DRIVERS:

The ratings will be based on the support provided by the irrevocable direct- pay letters of credit (LOCs) to be issued by JPMorgan Chase Bank, N.A. (rated 'A+/F1', Stable Outlook).

The bank is obligated to make payments of principal of and interest on the bonds upon maturity, acceleration and redemption, as well as purchase price for tendered bonds. The ratings will expire upon the earliest of: (a) Dec. 24, 2014, the stated expiration date of the LOCs; (b) any prior termination of the LOCs; or (c) defeasance of the bonds. The LOCs provide full and sufficient coverage of principal plus an amount equal to 34 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 weekly and daily rate modes. The Remarketing Agent for the bonds is Goldman, Sachs & Co.

The bonds bear interest at a weekly rate, but may be converted to a daily, term, flexible, libor-indexed, or fixed rate. While bonds bear interest in the weekly or daily rate modes, interest payments are on the first business day of each month. The trustee is obligated to make timely draws on the LOCs to pay principal, interest, and purchase price. Funds drawn under the LOCs are held uninvested, and are free from any lien prior to that of the bondholders. Holders may tender their bonds on any business day, provided the remarketing agent is given the requisite prior notice of the purchase. The bonds are subject to mandatory tender: (1) upon conversion of the interest rate; (2) upon expiration, substitution or termination of the LOCs; (3) following receipt of written notice from the bank of an event of default under the Reimbursement Agreement; (4) the initial term rate period mandatory tender date, Dec. 17, 2014 or such subsequent date; (5) if daily demand SLGs held for series 2011A bonds are converted into 90 day SLGs maturing more than 30 days prior to Dec. 17, 2014 and federal borrowing is at its statutory debt limit upon maturity of the 90 day SLGs and for five (5) days thereafter, bonds will be subject to mandatory tender within 20 days after the maturity of the 90 day SLGs; and (6) while in the daily or weekly rate mode, any business day specified by the borrower following trustee's receipt of notice of such tender from the borrower. Optional and mandatory redemption provisions also apply to the bonds. Additional bonds may be issued, no earlier than Dec. 17, 2014, provided they receive a separate series designation.

Bond proceeds will be used to finance a portion of the cost of construction of Tower 3 at the World Trade Center site in Lower Manhattan in New York City.

RATING SENSITIVITIES:

The ratings are exclusively tied to the short and long-term ratings that Fitch maintains on the bank providing the LOCs 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', June 14, 2013.

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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=710476

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.

Contacts

Fitch Ratings
Primary Analyst
Joseph Staffa
Senior Director
+1-212-908-0829
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Linda Friedman
Senior Director
+1-212-908-0727
or
Committee Chairperson
Trudy Zibit
Managing Director
+1-212-908-0689
or
Media Relations:
Brian Bertsch, New York, +1 212-908-0549
Email: brian.bertsch@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Joseph Staffa
Senior Director
+1-212-908-0829
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Linda Friedman
Senior Director
+1-212-908-0727
or
Committee Chairperson
Trudy Zibit
Managing Director
+1-212-908-0689
or
Media Relations:
Brian Bertsch, New York, +1 212-908-0549
Email: brian.bertsch@fitchratings.com