Fitch Rates New York City's (NY) $100MM GO Bank Bonds 'AA'; Outlook Stable

NEW YORK--()--Fitch Ratings assigns an 'AA' rating to bank bonds corresponding to the following New York City adjustable rate general obligation (GO) bonds:

--$50 million fiscal 2008 series D, subseries D-3.

--$50 million fiscal 2008 series D, subseries D-4.

The Rating Outlook is Stable.

The rating action is in connection with the substitution of the liquidity support provided to the above-referenced bonds with Standby Bond Purchase Agreements (SBPAs) to be issued by Bank of Montreal (rated 'AA-/F1+', Stable Outlook by Fitch). Existing SBPAs are provided by Credit Agricole Corporate and Investment Bank (rated 'A/F1', Stable Outlook). The substitution will occur on Dec. 3, 2014.

Based on a review of the terms governing bank bonds specified in the reimbursement agreement, it is Fitch's opinion that the incremental risk associated with bank bonds does not have a material impact on the city's long-term credit rating. For more information on the adjustable rate bonds, see 'Fitch to Upgrade S-T Rating on $100M NYC Adj Rate GOs Fiscal 2008 Series D-3, D-4 Bonds,' dated Nov 21, 2014 and available at www.fitchratings.com.

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

In addition to the sources of information identified in Fitch's Tax-Supported Rating Criteria, this action was additionally informed by information from CreditScope, CoreLogic Case-Shiller Home Price Index, and Global Insight.

Applicable Criteria and Related Research:

--'Tax-Supported Rating Criteria' (Aug. 14, 2012);

--'U.S. Local Government Tax-Supported Rating Criteria' (Aug. 14, 2012).

Applicable Criteria and Related Research:

U.S. Local Government Tax-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=685314

Tax-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686015

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=940055

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Contacts

Fitch Ratings
Primary Analyst:
Amy Laskey, +1-212-908-0568
Managing Director
Fitch Ratings, Inc.
33 Whitehall St
New York, NY 10004
or
Secondary Analyst:
Bernhard Fischer, +1-212-908-9167
Director
or
Committee Chairperson:
Jessalynn Moro, +1-212-908-0608
Managing Director
or
Elizabeth Fogerty, +1-212-908-0526
Media Relations, New York
elizabeth.fogerty@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst:
Amy Laskey, +1-212-908-0568
Managing Director
Fitch Ratings, Inc.
33 Whitehall St
New York, NY 10004
or
Secondary Analyst:
Bernhard Fischer, +1-212-908-9167
Director
or
Committee Chairperson:
Jessalynn Moro, +1-212-908-0608
Managing Director
or
Elizabeth Fogerty, +1-212-908-0526
Media Relations, New York
elizabeth.fogerty@fitchratings.com