Fitch Affirms S-T Rating on Lower CO River Auth (TX) CP Notes Series B at 'F1+'

NEW YORK--()--Fitch Ratings has affirmed the short-term rating of 'F1+'assigned to the Lower Colorado River Authority (LCRA) commercial paper notes, taxable series B (notes).

The rating action is in connection with the: (i) extension of the expiration date of the irrevocable direct-pay letter of credit (LOC provided by State Street Bank and Trust Company (State Street, rated 'AA/F1+', Stable Outlook) supporting the notes to Sept. 10, 2018; (ii) increase of the stated amount of the LOC from $100,000,000 to $150,000,000; and (iii) the reoffering of the notes on Sept. 4, 2015. The extended expiration date of the LOC is Sept. 10, 2018.

KEY RATING DRIVERS:

The 'F1+' rating on the series B notes is affirmed based on the continued support provided by the State Street LOC, which will provide coverage for $137,614,678 in principal amount of the notes plus 270 days of interest calculated at 12%, the maximum rate on the notes. Merrill Lynch, Pierce, Fenner & Smith Incorporated will continue to serve as dealer for the notes.

RATING SENSITIVITIES

The rating is exclusively tied to the short-term rating that Fitch maintains on the bank providing the LOC and will reflect all changes to that rating.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Rating Guidelines for Letter of Credit-Supported Bonds and Commercial Paper (pub. 21 May 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=866152

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=990394

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=990394

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
Janet Rosen
Analytical Consultant
+1-312-368-3172
Fitch Ratings, Inc.
70 W. Madison St.
Chicago, IL 60602
or
Secondary Analyst
Linda Friedman
Senior Analyst
+1-212-908-0727
or
Committee Chairperson
Joseph Staffa
Senior Analyst
+1-212-908-0829
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Janet Rosen
Analytical Consultant
+1-312-368-3172
Fitch Ratings, Inc.
70 W. Madison St.
Chicago, IL 60602
or
Secondary Analyst
Linda Friedman
Senior Analyst
+1-212-908-0727
or
Committee Chairperson
Joseph Staffa
Senior Analyst
+1-212-908-0829
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com