CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed the ratings on 10 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.
FirstEnergy Ohio PIRB Special Purpose Trust 2013
--Class A-1 at 'AAAsf'; Outlook Stable;
--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-3 at 'AAAsf'; Outlook Stable;
--Class A-4 at 'AAAsf'; Outlook Stable.
PE Environmental Funding, LLC series A
--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 SENSITIVITIES
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'.
Fitch's analysis of the Representations and Warranties (R&W) for both transactions can be found in 'FirstEnergy Ohio PIRB Special Purpose Trust 2013- Appendix'. These R&W are compared to those of typical R&W for the asset class as detailed in the special report 'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions' dated March 26, 2015.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' March 26, 2015;
--'Rating Criteria for U.S. Utility Tariff Bonds' Dec. 23, 2014.
--'CenterPoint Energy Transition Bond Company III, LLC' Jan. 28, 2008.
--'Cleco Katrina/Rita Hurricane Recovery Funding Storm Recovery Bonds, LLC' Feb. 26, 2008;
--'Entergy Arkansas Restoration Funding, LLC' Aug. 9, 2010;
--'Entergy Gulf States Hurricane Reconstruction Funding I, LLC, Senior Secured Transition Bonds, Series A' June 13, 2007;
--'FirstEnergy Ohio PIRB Special Purpose Trust 2013' June 2010, 2013;
--'FirstEnergy Ohio PIRB Special Purpose Trust 2013 Appendix' June 2010, 2013;
--'JCP&L Transition Funding, LLC, Series 2002-A' May 24, 2002;
--'JCP&L Transition Funding II,LLC, Series 2006-A' July 31, 2006.
--'PE Environmental Funding, LLC, Series A' March 22, 2007.
--'PE Environmental Funding, LLC, Series B' Dec. 16, 2009;
--'Rockland Electric Company Transition Funding, LLC, Series 2004-1' July 20, 2004.
Applicable Criteria and Related Research:
Rating Criteria for U.S. Utility Tariff Bonds
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=829808
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=985122
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.