NEW YORK--(BUSINESS WIRE)--Fitch Ratings affirms the ratings on seven U.S. utility tariff bond transactions as follows:
CenterPoint Energy Restoration Bond Company, LLC Series 2009
--Class A-1 at 'AAAsf'; Outlook Stable;
--Class A-2 at 'AAAsf'; Outlook Stable;
--Class A-3 at 'AAAsf'; Outlook Stable.
CenterPoint Energy Transition Bond Company II, LLC
--Class A-4 at 'AAAsf'; Outlook Stable;
--Class A-5 at 'AAAsf'; Outlook Stable.
Detroit Edison Securitization Funding, LLC Series 2001-1
--Class A-6 at 'AAAsf'; Outlook Stable.
Entergy Louisiana Investment Recovery Funding I, LLC
--Class A-1 at 'AAAsf'; Outlook Stable.
Entergy Texas Restoration Funding, LLC
--Class A-1 at 'AAAsf'; Outlook Stable;
--Class A-2 at 'AAAsf'; Outlook Stable;
--Class A-3 at 'AAAsf'; Outlook Stable.
PSE&G Transition Funding Co., LLC Series 2001-1
--Class A-8 at 'AAAsf'; Outlook Stable.
PSE&G Transition Funding II, LLC Series 2005-1
--Class A-4 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 2014);
--'Rating Criteria for U.S. Utility Tariff Bonds' (December 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=840947
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