Fitch Affirms New York State Environmental Facilities Corp.'s Extendable Muni CP Notes at 'F1+'

CHICAGO--()--Fitch Ratings affirms its 'F1+' rating to the following New York State Environmental Facilities Corp.'s (EFC) extendable municipal commercial paper (EMCP) notes:

---SRF EMCP notes (Series 1) program in an aggregate authorized amount not to exceed $200 million.

SECURITY

The EMCP notes will be secured by the proceeds of notes or other obligations issued by EFC, pledged recipient repayments, and a subordinate commitment on EFC's equity account, which consists of released (or de-allocated) reserves from bonds issued under EFC's master trust agreement including the senior and subordinate 1991 MFI pooled program (SRF bonds rated 'AAA', Stable Outlook by Fitch), the New York City Municipal Water Finance Authority program (senior and subordinate bonds rated 'AAA' and 'AA+', respectively) and the senior and subordinate 2010 MFI pooled program (senior lien state revolving fund [SRF] bonds rated 'AAA', Stable Outlook; subordinate lien obligations are not rated by Fitch).

KEY RATING DRIVERS

STRONG PROGRAM STRUCTURE: The EMCP has solid provisions and is afforded superior market access by EFC's 2010 MFI SRF program.

SIGNIFICANT LIQUIDITY: The EMCP has ample available liquidity to redeem the notes, if necessary.

RATING SENSITIVITIES

Declines in Liquidity and Market Access: Sufficient internal liquidity and/or continued market access for EFC's existing bond programs are necessary to maintain the EMCP rating.

CREDIT PROFILE

When issued, note proceeds will reimburse EFC for the cost of acquiring loans for its clean water and drinking water SRF program. EMCP notes may also refund outstanding EMCP notes and pay costs of issuance.

The EMCP will have original maturities from one to 90 days from the original issue date of each note. However, EFC reserves the right to extend the maturity up to 270 days from and including the original issue date. If the notes are extended to the extended maturity date, the interest rate would be reset based on a formula tied to the SIFMA and the program's EMCP rating.

EMCP notes are expected to be repaid by the proceeds of bonds issued through EFC's 2010 MFI (see Fitch release "Fitch Rates NY State EFC's Rev Bonds Ser. 2014B (2010 MFI) 'AAA'; Outlook Stable, dated May 23, 2014) or new EMCP notes. However, EFC has ample liquid resources available within its equity account (averaging approximately $833 million over the last three years) to repay the EMCP notes, if necessary. EFC will transfer to the trustee sufficient funds from pledged sources on or before each date when EMCP notes are due.

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

Applicable Criteria and Related Research:

--'Revenue-Supported Rating Criteria' (June 3, 2013);

--'State Revolving Fund and Leveraged Municipal Loan Pool Criteria' (April 28, 2014).

Applicable Criteria and Related Research:

Revenue-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=750012

State Revolving Fund and Leveraged Municipal Loan Pool Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=746076

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=867054

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Contacts

Fitch Ratings
Primary Analyst
Adrienne M. Booker, +1 312-368-5471
Senior Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Secondary Analyst
Major Parkhurst, +1 512-215-3724
Director
or
Committee Chairperson
Karen Krop, +1 212-908-0661
Senior Director
or
Media Relations:
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Adrienne M. Booker, +1 312-368-5471
Senior Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Secondary Analyst
Major Parkhurst, +1 512-215-3724
Director
or
Committee Chairperson
Karen Krop, +1 212-908-0661
Senior Director
or
Media Relations:
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com