Fitch Affirms 'F1+' S-T Rating on Maryland CDA Residential Rev Bonds, 2012 Series B

NEW YORK--()--Fitch Ratings affirms the short-term rating of 'F1+' assigned to the $45,000,000 Community Development Administration, Maryland Department of Housing and Community Development (Maryland CDA) residential revenue bonds, 2012 Series B.

The short-term rating action is in connection with: (i) the substitution of the liquidity support currently provided by the Bank of New York Mellon (rated 'AA/F1+', Stable Outlook) in the form of a Standby Bond Purchase Agreement (SBPA) with a substitute SBPA to be issued by TD Bank, N.A. (rated 'AA-/F1+', Stable Outlook); and (ii) the mandatory tender of the bonds, which will occur on Aug. 18, 2015.

KEY RATING DRIVERS:

The short-term 'F1+'rating is based on the liquidity support provided by TD Bank, N.A., in the form of a substitute SBPA, which has a stated expiration date of Aug. 20, 2018, unless extended or earlier terminated, during the variable interest rate mode only. The long-term 'AA+' rating continues to be based on the rating assigned to the bonds. The Rating Outlook is Stable for the long-term rating. (For more information on the long-term rating, see the press release dated May 17, 2015, available on Fitch's website at www.fitchratings.com.)

The substitute SBPA provides for the payment of the principal component of purchase price plus an amount equal to 187 days of interest calculated at the maximum rate of 12% based on a year of 365 days for tendered bonds during the variable rate mode in the event that the proceeds of a remarketing of the bonds are insufficient to pay the purchase price following an optional or mandatory tender. The substitute SBPA will expire on Aug. 20, 2018, the stated expiration date, unless such date is extended; upon conversion to a mode other than a variable rate mode; or upon the occurrence of certain events of default which result in a mandatory tender or other events of default related to the credit of the bonds which result in an automatic and immediate termination. A mandatory tender of the bonds will occur on Aug. 18, 2015, the SBPA substitution date. The remarketing agent for the bonds is TD Securities (USA) LLC.

RATING SENSITIVITIES

The short-term rating reflects the short-term rating that Fitch maintains on the bank providing liquidity support, and will be adjusted upward or downward in conjunction with the short-term rating of the bank and, in some cases, the long-term rating of the bonds. The long-term rating is exclusively tied to the creditworthiness of the bonds and will reflect all changes to that rating.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Rating Guidelines for Variable-Rate Demand Obligations and Commercial Paper Issued with External Liquidity Support (pub. 22 Jan 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=856189

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=989600

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=989600

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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.

Contacts

Fitch Ratings
Primary Analyst
Linda Friedman
Senior Director
+1-212-908-0727
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Richard Park
Director
+1-212-908-0289
or
Committee Chairperson
Maura McGuigan
Senior Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Linda Friedman
Senior Director
+1-212-908-0727
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Richard Park
Director
+1-212-908-0289
or
Committee Chairperson
Maura McGuigan
Senior Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com