NEW YORK--(BUSINESS WIRE)--Fitch Ratings has assigned a rating of 'AAApre' to the following South Carolina Public Services Authority Santee Cooper Revenue Obligations:
--$13,370,000 2006 Tax-Exempt series A maturing Jan. 1, 2017, Jan. 1, 2018 and Jan. 1, 2030;
--$32,750,000 2007 series A maturing Jan. 1, 2020, Jan. 1, 2027 and Jan. 1, 2032;
--$93,035,000 2008 Tax-Exempt series A maturing Jan. 1, 2023; 2008 series A maturing Jan. 1, 2028 (partial refunding); and 2008 series A maturing Jan. 1, 2038 (partial refunding);
--$30,765,000 2009 Tax-Exempt series B maturing Jan. 1, 2020, Jan. 1, 2021 and Jan. 1, 2024 - Jan. 1, 2026.
The Rating Outlook is Stable.
KEY RATING DRIVERS
The 'AAApre' Stable Outlook rating is based on the pledge of securities in the irrevocable escrow fund securing the bonds and reflects the lien of the refunded bondholders on the escrow funds and that all amounts have been invested in direct non-callable obligations of the United States. The U.S. full faith and credit is currently rated 'AAA' with a Stable Outlook by Fitch.
The bonds were refunded on Feb. 26, 2015 with portions of the proceeds of the $598,960,000 South Carolina Public Service Authority Santee Cooper Revenue Obligations series 2015 Tax-Exempt Refunding and Improvement Series A. The 2006 Series A, 2007 Series A, and 2009 Series B maturities were fully refunded. The 2008 Series A bonds maturing Jan. 1, 2023 were fully refunded and the 2008 Series A bonds maturing Jan. 1, 2028 and Jan. 1, 2038 were partially refunded with new CUSIP numbers assigned to the refunded and non-refunded portions. The ratings apply to the bonds listed by CUSIP numbers at the end of this release.
Pursuant to an irrevocable escrow certificate, The Bank of New York Mellon Trust Company, N.A., as escrow agent, holds a separate special irrevocable escrow fund in trust for the benefit of the refunded bondholders. All cash and securities held in this fund are pledged irrevocably to the payment when due of interest on the refunded bonds and the payment of principal upon maturity or redemption. Substitution is permitted only at the time of delivery of the securities (which has already occurred) and there are no provisions for reinvestment of securities. The 2006 series A bonds will be redeemed at par on Jan. 1, 2016; the 2007 series A bonds will be redeemed at par on Jan. 1, 2017; and the 2008 series A and 2009 series B bonds will be redeemed at par on Jan. 1, 2019.
Samuel Klein and Company verified the mathematical accuracy of computations relating to the adequacy of income from escrowed funds and securities to pay debt service requirements of the refunded bonds. These computations were contained in schedules provided to them by Barclays Capital Inc., the underwriter for the refunding bonds transaction. According to the Samuel Klein verification report, the anticipated receipts from the securities and cash deposited in the escrow fund will produce amounts necessary for timely payment of the principal and interest on the refunded bonds.
RATING SENSITIVITIES
The rating is exclusively tied to the U.S. sovereign creditworthiness and will reflect all changes to that rating.
The 'AAApre' rating applies to the bonds with the following CUSIP numbers:
2006 Series A:
837147L47
837151LH0
837147N29
2007 Series A:
837147V46
837147W45
837151LQ0
2008 Series A:
8371473E5
837151NQ8
837151NR6
2009 Series B:
8371475F0
8371475G8
8371475K9
8371475L7
8371475M5
Additional information is available at www.fitchratings.com.
Applicable Criteria and Related Research:
--'U.S. Municipal Structured Finance Criteria' (Feb. 23, 2015);
--'Guidelines for Rating Prerefunded U.S. Municipal Bonds' (Dec. 9, 2014).
Applicable Criteria and Related Research:
U.S. Municipal Structured Finance Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=862222
Guidelines for Rating Prerefunded U.S. Municipal Bonds
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=818549
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=982370
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