Fitch Affirms Wells Fargo Stage Trust Floater & Residual Certs, Series 2009-34C, 2009-36C & 2010-40C

NEW YORK--()--Fitch Ratings affirms the following ratings assigned to the floaters and residuals of the Wells Fargo Stage Trust series listed below

--Series 2009-34C floaters 'AA-/F1+', Stable Outlook; residuals 'AA-', Stable Outlook;

--Series 2009-36C floaters 'AA-/F1+', Stable Outlook; residuals 'AA-', Stable Outlook;

--Series 2009-64Z floaters 'AA-/F1+', Stable Outlook; residuals 'AA-', Stable Outlook;

--Series 2010-40C floaters 'AA/F1+', Stable Outlook; residuals 'AA', Stable Outlook.

KEY RATING DRIVERS

The affirmation of the long- and short-term ratings is in connection with amendments made to the trust agreements to restructure the trusts to not constitute a covered fund under Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Following the amendments, the floaters will bear interest over a period of time defined as a term period. Term periods are set by the applicable sponsor and will be between 90 and 366 days long and will utilize the index method or fixed method as the applicable reset rate method. The initial reset rate method for each of the floaters above will be the index method.

The long-term 'AA-', Stable Outlook rating assigned to the series 2009-34C, 2009-36C and 2009-64Z Floaters and Residual certificates continue to be based on the Custodial Receipts deposited in the respective Wells Fargo Stage Trust. The Custodial Receipts evidence a beneficial interest in the underlying bonds (not rated by Fitch) and are supported by custodial level credit enhancement in the form of separate swap agreements provided by Wells Fargo & Company (rated 'AA-/F1+', Stable Outlook).

The long-term 'AA', Stable Outlook rating assigned to the series 2010-40C Floaters and Residual certificates continues to be based on the Harbor Department of the City of Los Angeles Revenue Bonds, 2009 Series B (currently rated 'AA', Stable Outlook) deposited in the trust.

The amendments to the trust agreements will also remove the floater holder's right to optionally tender their floaters for purchase. At the end of each term period, the floaters will be subject to mandatory tender and remarketing by the remarketing agent. The liquidity bank is obligated the make payment for the purchase price of tendered floaters that are not remarketed following a mandatory tender. As a result of these changes, the short-term rating assigned to the floaters will reflect the liquidity bank's obligation to fund the payment of purchase price for unremarketed floaters following a mandatory tender only.

The 'F1+' rating assigned to the series 2009-34C, 2009-36C and 2009-64Z Floater Certificates is based on the liquidity facilities provided by Wells Fargo & Company, which have a stated expiration date of Dec. 2, 2016 unless such date is extended or earlier terminated.

The 'F1+' rating assigned to the series 2010-40C Floater Certificates is based on the liquidity facility provided by Wells Fargo Bank, N.A. (rated 'AA-/F1+', Stable Outlook), which has a stated expiration date of Dec. 2, 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 assets deposited in the trust. The long-term rating assigned to the series 2009-34C, 2009-36C and 2009-64Z Floater and Residual Certificates is exclusively tied to the long-term rating that Fitch maintains on the bank providing credit enhancement and will reflect all changes to that rating. The long-term rating assigned to the series 2010-40C Floaters and Residuals Certificates is exclusively tied to the long-term rating assigned to the creditworthiness of the underlying bond deposited in the trust and will reflect all changes to that rating.

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=995901

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=995901

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