Fitch Affirms 6 Gas Pre-pay Transactions; Outlook Revised to Stable

NEW YORK--()--Fitch Ratings has affirmed the rating of the following prepaid gas transactions at 'A':

--Long Beach Bond Finance Authority, natural gas purchase revenue bonds, series 2007A & B;

--Main Street Natural Gas, gas project revenue bonds, series 2006B and series 2007A;

--Clarksville Natural Gas Acquisition Corporation, gas revenue bonds, series 2006;

--Public Authority for Colorado Energy, natural gas purchase revenue bonds, series 2008A;

--Roseville Natural Gas Financing Authority, gas revenue bonds, series 2007.

The Rating Outlook on all bonds is revised to Stable from Negative.

The rating action reflects Fitch's assessment of the credit quality of the various counterparties and enhancement providers and Fitch's May 19, 2015 decision to revise the Rating Outlook on Bank of America Corp.'s (BAC) 'A' long-term Issuer Default Rating to Stable from Negative.

Natural gas is supplied by Merrill Lynch Commodities Inc., whose obligations are guaranteed by BAC, in each of the transactions noted above.

RATING SENSITIVITIES

Change in Counterparty Ratings: The long-term rating on the bonds will continue to be determined by Fitch's assessment of the transaction structure, the role of the remaining counterparties in the structure, and their credit quality.

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

Applicable Criteria and Related Research:

--'Criteria for Rating Prepaid Energy Transactions,' dated July 10, 2014;

--'U.S. Municipal Structured Finance Criteria' dated Feb. 23, 2015.

--'Fitch Upgrades Bank of America's VR to 'a'; Outlook Revised to Stable' dated May 19, 2015

Applicable Criteria and Related Research:

U.S. Municipal Structured Finance Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=862222

Criteria for Rating Prepaid Energy Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=752050

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=985179

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Contacts

Fitch Ratings
Primary Analyst:
Hugh Welton, +1-212-908-0742
Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst:
Dennis M. Pidherny, +1-212-908-0738
Managing Director
or
Committee Chairperson:
Christopher Hessenthaler, +1-212-908-0773
Senior Director
or
Elizabeth Fogerty, +1-212-908-0526
Media Relations, New York
elizabeth.fogerty@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst:
Hugh Welton, +1-212-908-0742
Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst:
Dennis M. Pidherny, +1-212-908-0738
Managing Director
or
Committee Chairperson:
Christopher Hessenthaler, +1-212-908-0773
Senior Director
or
Elizabeth Fogerty, +1-212-908-0526
Media Relations, New York
elizabeth.fogerty@fitchratings.com