Fitch Rates Orange County Water District (CA) CP Certificates Series A and B 'F1'

NEW YORK--()--Fitch Ratings has assigned a rating of 'F1' to the not to exceed $70,000,000 Orange County Water District, CA (OCWD) commercial paper certificates, series A (tax-exempt) and series B (taxable) (the notes) evidencing undivided interest in principal and interest payments made by OCWD pursuant to tax and revenue anticipation notes issued to OCWD Public Facilities Corporation. The notes had been outstanding with the support of an irrevocable direct-pay letter of credit (LOC) provided by Bayerische Landesbank. Fitch is assigning a credit enhanced rating for the first time in connection the provision of the substitute LOC provided by Sumitomo Mitsui Banking Corporation, acting through its New York Branch.

KEY RATING DRIVERS

The 'F1' rating is based on the support of a LOC provided by Sumitomo Mitsui Banking Corporation, acting through its New York Branch (Sumitomo; 'A/F1'/Outlook Stable) which has a stated expiration date of Nov. 16, 2018, unless extended or earlier terminated.

U.S. Bank National Association as the Issuing and Paying Agent (IPA) for the notes is directed to draw on the Sumitomo LOC to pay principal and interest on maturing notes. The Sumitomo LOC provides coverage for the principal amount of the notes due on the maturity dates of the notes plus 270 days of interest based on a 360 day year.

All notes will be issued at par, with interest due at maturity. Following the occurrence of an event of default under the LOC, Sumitomo may direct the IPA to immediately stop the issuance of any additional notes. The IPA will cease issuance and continue to draw on the LOC for the payment of principal and interest due as outstanding notes mature. Amounts drawn under the LOC will not be reinstated. Alternatively, Sumitomo may direct the IPA to make a final drawing in full for the principal and interest due on all notes outstanding but not yet matured. Following Sumitomo's giving the final drawing notice the LOC will expire on the earlier of (a) the date which is the 15th calendar day after the date of receipt by the IPA of such notice and (b) the date on which the drawing resulting from the delivery of the final drawing notice is honored by the bank. Citigroup is the 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=994405

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=994405

Endorsement Policy

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

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Contacts

Fitch Ratings
Primary Analyst
Linda Friedman
Senior Director
+1-212-908-0689
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Richard Park
Director
+1-212-908-0289
or
Committee Chairperson
Mario Civico
Senior Director
+1-212-908-0796
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
+1-212-908-0689
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Richard Park
Director
+1-212-908-0289
or
Committee Chairperson
Mario Civico
Senior Director
+1-212-908-0796
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com