Fitch Affirms 6 Gas Pre-Pay Transactions; Outlook Revised to Negative

NEW YORK--()--Fitch Ratings has affirmed the rating of the following prepaid gas transactions at 'A':

--Long Beach Bond Financing Authority, natural gas purchase revenue bonds, series 2007A & B;

--Main Street Natural Gas, gas project revenue bonds, series 2006B and series 2007A;

--Clarksville Natural Gas Acquisition Corporation, gas revenue bonds, series 2006;

--Public Authority for Colorado Energy, natural gas purchase revenue bonds, series 2008;

--Roseville Natural Gas Financing Authority, gas revenue bonds, series 2007A.

In addition, the Outlook on all bonds is revised to Negative from Stable.

The rating action reflects Fitch's assessment of the credit quality of the various counterparties and enhancement providers and Fitch's March 26, 2014 decision to revise the Rating Outlook on Bank of America Corp.'s (BAC) 'A' long-term Issuer Default Rating to Negative from Stable.

Natural gas is supplied by Merrill Lynch Commodities Inc., whose obligations are guaranteed by BAC, in each of the transactions noted above.

RATING SENSITIVITIES

Change in Counterparty Ratings: The long-term rating on the bonds will continue to be determined by Fitch's assessment of the transaction structure, the role of the remaining counterparties in the structure, and their credit quality.

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

Applicable Criteria and Related Research:

--'Criteria for Rating Prepaid Energy Transactions,' dated July 26, 2013;

--'Prepay Gas Transactions: Focus on Counterparty Risk,' dated Feb. 23, 2009.

Applicable Criteria and Related Research:

Criteria for Rating Prepaid Energy Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=714538

Prepay Gas Transactions: Focus on Counterparty Risk
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=427254

Additional Disclosure

Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=825519

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Contacts

Fitch Ratings
Primary Analyst
Hugh Welton, +1-212-908-0742
Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Dennis M. Pidherny, +1-212-908-0738
Managing Director
or
Committee Chairperson
Christopher Hessenthaler, +1-212-908-0773
Senior Director
or
Media Relations, New York
Brian Bertsch, +1-212-908-0549
brian.bertsch@fitchratings.com

Sharing

Contacts

Fitch Ratings
Primary Analyst
Hugh Welton, +1-212-908-0742
Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Dennis M. Pidherny, +1-212-908-0738
Managing Director
or
Committee Chairperson
Christopher Hessenthaler, +1-212-908-0773
Senior Director
or
Media Relations, New York
Brian Bertsch, +1-212-908-0549
brian.bertsch@fitchratings.com