Fitch Rates 3 Tender Option Bond Series Trusts

NEW YORK--()--Fitch Ratings assigns the following ratings to the Floater Certificates and Residual Certificates of the Tender Option Bond Trust series listed below:

--Floater Certificates, Series 2015-XF2173 - 'A/F1', Stable Outlook; Residual Certificates, Series 2015-XF2173 -'A', Stable Outlook;

--Floater Certificates, Series 2015-XF2194 - 'AA-/F1', Stable Outlook; Residual Certificates, Series 2015-XF2194 -'AA-', Stable Outlook;

--Floater Certificates, Series 2015-XF2196 - 'AA-/F1', Stable Outlook; Residual Certificates, Series 2015-XF2196 -'AA-', Stable Outlook.

KEY RATING DRIVERS

The long-term 'A', Stable Outlook ratings assigned to the series 2015-XF2173 Floater Certificates and series 2015-XF2173 Residual Certificates are based on the ratings that Fitch has assigned to the guarantee provided by Morgan Stanley (currently rated 'A/F1', Stable Outlook) securing the obligations of Morgan Stanley Municipal Funding Inc. (MSMFI) pursuant to a swap agreement and credit and liquidity confirmation thereto, between MSMFI and The Bank of New York, as Custodian, securing the Custodial Receipts that have been deposited in the series 2015-XF2173 trust.

The long-term 'AA-', Stable Outlook ratings assigned to the series 2015-XF2194 Floater Certificates and series 2015-XF2194 Residual Certificates are based on the ratings that Fitch has assigned to The Regents of the University of California Limited Project Revenue Bonds, 2012 Series G term bonds (rated 'AA-', Stable Outlook) that have been deposited in the series 2015-XF2194 trust.

The long-term 'AA-', Stable Outlook ratings assigned to the series 2015-XF2196 Floater Certificates and series 2015-XF2196 Residual Certificates are based on the ratings that Fitch has assigned to Colorado Health Facilities Authority Revenue Bonds, Series 2013A (SCL Health System) term bonds (rated 'AA-', Stable Outlook) that have been deposited in the series 2015-XF2196 trust.

The short-term 'F1' rating assigned to the Floater Certificates is based on the liquidity facilities provided by Morgan Stanley Bank, N.A. (rated 'A+/F1', Stable Outlook), which has a stated expiration date of Nov. 15, 2016, unless such date is extended or earlier terminated.

RATING SENSITIVITIES

The short-term rating assigned to the Floater Certificates 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 underlying assets deposited in the trust. The long-term ratings assigned to the series 2015-XF2194 and 2015-XF2196 Floater Certificates and Residual Certificates are exclusively tied to the creditworthiness of the underlying bonds deposited in the trust and will reflect all changes to that rating. The long-term ratings assigned to the series 2015-XF2173 Floater Certificates and Residual Certificates are exclusively tied to Morgan Stanley as the guarantee provider of the obligations of MSMFI, the provider of credit enhancement for the underlying assets deposited in the trust.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria

Guidelines for Rating Tender Option Bonds (pub. 10 Apr 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864040

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=995893

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=995893

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
Richard Park
Director
+1-212-908-0289
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Mario Civico
Senior Director
+1-212-908-0796
or
Committee Chairperson
Linda Friedman
Senior Director
+1-212-908-0727
or
Media Relations
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Richard Park
Director
+1-212-908-0289
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Mario Civico
Senior Director
+1-212-908-0796
or
Committee Chairperson
Linda Friedman
Senior Director
+1-212-908-0727
or
Media Relations
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com