NEW YORK--(BUSINESS WIRE)--Fitch Ratings assigns the following ratings to the RBC Municipal Floater Certificates (Floater Certificates), RBC Municipal Residual Certificates (Residual Certificates) and Trust Receipts of the RBC Municipal Products, LLC Trust series listed below:
--Floater Certificates, Series E-62 'AA/F1+', Stable Outlook;
--Residual Certificates, Series E-62 'AA', Stable Outlook;
--Trust Receipts, Series 2015-E62 'AA'.
KEY RATING DRIVERS
The long-term 'AA', Stable Outlook ratings assigned to the series E-62 Floater and Residual Certificates and Trust Receipts are based on the rating that Fitch has assigned to the irrevocable direct-pay letter of credit (LOC) issued by Royal Bank of Canada, acting through a New York branch (RBC, rated 'AA/F1+', Stable Outlook), which has a stated expiration date of July 30, 2018, unless such date is extended or earlier terminated, which secures the Trust Receipts deposited in the trust.
The short-term 'F1+' rating is based on the liquidity facility provided by RBC, which has a stated expiration date of July 30, 2018, unless such date is extended or earlier terminated. The initial rate mode for the Floater Certificates will be the SIFMA Term Mode which expires on Nov. 2, 2015. Floater Certificate holders may not optionally tender their bonds in a term mode that is greater than 30 days in length and therefore the short-term rating assigned to the floaters will only reflect the liquidity bank's obligation to fund the payment of purchase price for unremarketed floaters following a mandatory tender.
RATING SENSITIVITIES
The rating is exclusively tied to the short and long-term rating that Fitch maintains on the bank providing the LOC and liquidity facility and will reflect all changes to that rating.
Additional information is available on www.fitchratings.com
Applicable Criteria
Guidelines for Rating Tender Option Bonds (pub. 10 Apr 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864040
U.S. Municipal Structured Finance Criteria (pub. 23 Feb 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=862222
Additional Disclosures
Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=988760
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=988760
Endorsement Policy
https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31
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