NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed the 'AA-/F1+' rating assigned to the $30,000,000 Miami-Dade County Industrial Development Authority taxable industrial development revenue bonds (Dolphins Stadium Project), series 2007A.
The Rating Outlook is Stable for the long-term rating.
The rating action is in connection with (i) the replacement of the irrevocable direct-pay letter of credit (LOC) previously provided by TD Bank, N.A. (rated 'AA-/F1+, Stable Outlook) with a replacement LOC issued by (TD Bank, N.A.), (ii) the purchase in lieu of redemption of the 2007 bonds and (iii) the bifurcation of the series 2007 bonds into two separate series named the Miami-Dade County Industrial Development Authority taxable industrial development revenue bonds (Dolphins Stadium Project), series 2007A (the series 2007A taxable bonds) and the Miami-Dade County Industrial Development Authority taxable industrial development revenue bonds (Dolphins Stadium Project), series 2007B (the series 2007B taxable bonds).
The series 2007A bonds in the principal amount of $30,000,000 will continue to bear interest at the variable rate and are secured by the replacement LOC. The series 2007B bonds in the principal amount of $20,000,000 are being converted to the Floating Rate Notes Mode and privately placed.
KEY RATING DRIVERS
The long-term 'AA-' rating will be based on the higher of the underlying long-term rating assigned to the bonds by Fitch (currently rated 'BBB', Stable Outlook), and the long-term rating assigned by Fitch to TD Bank, N.A. (rated 'AA-/F1+', Stable Outlook, the bank providing the irrevocable direct-pay LOC securing the bonds. The short-term 'F1+' rating will be based solely on the LOC. For information about the underlying credit rating see press release dated Nov. 20, 2014, 'Fitch Affirms South Florida Stadium LLC Revs at 'BBB' (Underlying); Outlook Stable' available at 'www.fitchratings.com'.
Pursuant to the replacement LOC, the bank is obligated to make regularly scheduled payments of principal of and interest on the bonds in addition to payments due upon maturity, acceleration and redemption, as well as purchase price for tendered bonds. Additionally, the bond obligor is in the flow of funds to make timely payments of principal and interest due upon maturity, acceleration and redemption. The credit-enhanced ratings will expire upon the earliest of: (a) May 31, 2018, the initial stated expiration date of the replacement LOC, unless such date is extended; (b) conversion from the variable rate mode; (c) any prior termination of the substitute LOC; and (d) defeasance of the bonds. The TD Bank, N.A. replacement LOC provides full and sufficient coverage of principal plus an amount equal to 52 days of interest at a maximum rate of 15% based on a year of 365 days and purchase price for tendered bonds, while in the variable rate mode. The Remarketing Agent for the bonds is TD Securities (USA) LLC.
The long-term rating is tied to the Fitch long-term rating assigned to the bonds and the long-term rating that Fitch maintains on the replacement bank providing the replacement LOC. Changes to one or both of these ratings may affect the long-term rating assigned to the bonds.
The short-term rating is exclusively tied to the short-term rating that Fitch maintains on the bank providing the replacement LOC and will reflect all changes to that rating.
Additional information is available at 'www.fitchratings.com'.
Rating Guidelines for Letter of Credit-Supported Bonds and Commercial Paper (pub. 21 May 2015)
U.S. Municipal Structured Finance Criteria (pub. 23 Feb 2015)