Fitch Affirms 11 U.S. Utility Tariff Bond Transactions

NEW YORK--()--Fitch Ratings affirms the ratings on 11 U.S. utility tariff bond transactions as follows:

CenterPoint Energy Transition Bond Company III, LLC

Series 2008

--Class A-1 at 'AAAsf'; Outlook Stable;

--Class A-2 at 'AAAsf'; Outlook Stable.

Cleco Katrina/Rita Hurricane Recovery Funding Storm Recovery Bonds, LLC

Series 2008-A

--Class A-1 at 'AAAsf'; Outlook Stable;

--Class A-2 at 'AAAsf'; Outlook Stable.

Entergy Arkansas Restoration Funding, LLC

--Class A-1 at 'AAAsf'; Outlook Stable.

Entergy Gulf States Hurricane Reconstruction Funding I, LLC

Series A

--Class A-2 at 'AAAsf'; Outlook Stable;

--Class A-3 at 'AAAsf'; Outlook Stable.

JCP&L Transition Funding, LLC

2002-A

--Class A-4 at 'AAAsf'; Outlook Stable.

JCP&L Transition Funding II, LLC

2006-A

--Class A-2 at 'AAAsf'; Outlook Stable;

--Class A-3 at 'AAAsf'; Outlook Stable;

--Class A-4 at 'AAAsf'; Outlook Stable.

Louisiana Local Government Environmental Facilities & Community Development Authority System Restoration Bonds (LURC Project/EGSL), Series 2010

--Class A-1 at 'AAAsf'; Outlook Stable;

--Class A-2 at 'AAAsf'; Outlook Stable;

--Class A-3 at 'AAAsf'; Outlook Stable.

Louisiana Local Government Environmental Facilities & Community Development Authority (LURC Project/ELL), Series 2010

--Class A-2 at 'AAAsf'; Outlook Stable;

--Class A-3 at 'AAAsf'; Outlook Stable;

--Class A-4 at 'AAAsf'; Outlook Stable.

PE Environmental Funding, LLC

Series A

--Class A-1 at 'AAAsf'; Outlook Stable;

--Class A-2 at 'AAAsf'; Outlook Stable;

--Class A-3 at 'AAAsf'; Outlook Stable;

--Class A-4 at 'AAAsf'; Outlook Stable.

PE Environmental Funding, LLC

Series B

--Class A-1 at 'AAAsf'; Outlook Stable.

Rockland Electric Company Transition Funding, LLC

Series 2004-1

--Class A-1 at 'AAAsf'; Outlook Stable.

KEY RATING DRIVERS

The transactions are performing within expectations, with levels of outstanding principal amounts in-line with their targeted amortization schedules. The true-up mechanism in each transaction is performing as expected, providing adequate credit support for all outstanding classes.

RATING SENSITIVITY

As part of Fitch's initial rating sensitivity, Fitch conducted a break the bond case which provides an alternative means by which to measure the potential effects of rapid, significant declines in power consumption while capping the residential securitization charges at 20% of the total customer bill. This analysis determines the maximum level of forecasted energy decline that would cause a default in required payments on the securitizations or cause the tariff charges to exceed 20% of the total residual customer bill. Despite this severe decline in consumption, due to the true-up mechanisms, the tariff charges are able to pay all debt service by the legal final maturity date.

For further detail on the rating sensitivity analysis for Utility Tariff Bonds, please refer to Fitch's criteria titled Rating Criteria for U.S. Utility Tariff Bonds available at 'www.fitchratings.com'.

Individual Representations, Warranties, and Enforcement Mechanisms reports are available for all structured finance transactions initially rated on or after Sept. 26, 2011 at 'www.fitchratings.com'.

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 20, 2013);

--'Rating Criteria for U.S. Utility Tariff Bonds'( Dec. 18, 2013).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748821

Rating Criteria for U.S. Utility Tariff Bonds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=726322

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=834614

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Contacts

Fitch Ratings
Contact:
Primary Analyst
Eugene Kushnir
Associate Director
+1-212-908-0830
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 60602
or
Committee Chairperson
Bradley Sohl
Senior Director
+1-212-908-0792
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
sandro.scenga@fitchratings.com

Sharing

Contacts

Fitch Ratings
Contact:
Primary Analyst
Eugene Kushnir
Associate Director
+1-212-908-0830
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 60602
or
Committee Chairperson
Bradley Sohl
Senior Director
+1-212-908-0792
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
sandro.scenga@fitchratings.com