NEW YORK--(BUSINESS WIRE)--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.
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.
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