NEW YORK--(BUSINESS WIRE)--Fitch Ratings upgrades the ratings to 'AA-/F1+' from 'A+/F1' for the $42,000,000 County of DuPage, Illinois variable rate demand revenue bonds (The Morton Arboretum Project), series 2003. The Rating Outlook for the long-term rating is Stable. The rating action is in connection with: (i) the substitution of the irrevocable direct-pay letter of credit (LOC) previously provided by PNC Bank (rated 'A+/F1', Outlook Stable) with a substitute LOC to be issued by The Northern Trust Company (rated 'AA-/F1+', Outlook Stable); and (ii) the mandatory tender of the bonds, which occurs on Aug. 20, 2015.
KEY RATING DRIVERS
The ratings are based on the support provided by the substitute LOC issued by The Northern Trust Company, which has an initial stated expiration date of Aug. 20, 2021, unless such date is extended or earlier terminated, while the bonds are in the weekly interest rate mode only.
Pursuant to the substitute 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. The Northern Trust Company LOC provides full and sufficient coverage of principal plus an amount equal to 35 days of interest at a maximum rate of 12% based on a year of 365 days and purchase price for tendered bonds, while in the weekly rate mode. The Remarketing Agent for the bonds is Northern Trust Securities, Inc.
The rating is exclusively tied to the short- and long-term rating that Fitch maintains on the bank providing the substitute 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)
Dodd-Frank Rating Information Disclosure Form