Fitch Rates Tender Option Bond Series 2016-XF0434, 2016-XF0436, 2016-XF0438 and 2016-XF0439 Trusts

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

--Floater Receipts, Series 2016-XF0434 'AAA/F1', long-term rating on Rating Watch Negative; Residual Receipts, Series 2016-XF0434 'AAA', Rating Watch Negative;

--Floater Receipts, Series 2016-XF0436 'AA-/F1', Stable Outlook; Residual Receipts, Series 2016-XF0436 'AA-', Stable Outlook;

--Floater Receipts, Series 2016-XF0438 'AA-/F1', Stable Outlook; Residual Receipts, Series 2016-XF0438 'AA-', Stable Outlook;

--Floater Receipts, Series 2016-XF0439 'AA/F1', Stable Outlook; Residual Receipts, Series 2016-XF0439 'AA', Stable Outlook.

KEY RATING DRIVERS

The long-term 'AAA', Rating Watch Negative ratings assigned to the series 2016-XF0434 Floater and Residual Receipts are based on the rating that Fitch has assigned to the Higher Education Student Assistance Authority Student Loan Revenue Bonds, Series 2010-FFELP Class A-2 (rated 'AAA', Rating Watch Negative) that have been deposited in the series 2016-XF0434 trust.

The long-term 'AA-', Stable Outlook ratings assigned to the series 2016-XF0436 Floater and Residual Receipts are based on the rating that Fitch has assigned to the Commonwealth of Pennsylvania General Obligation Bonds, First Series of 2013 (rated 'AA-', Stable Outlook) that have been deposited in the series 2016-XF0436 trust.

The long-term 'AA-', Stable Outlook ratings assigned to the series 2016-XF0438 Floater and Residual Receipts are based on the rating that Fitch has assigned to the Rutgers, The State University General Obligation Bonds, 2013 Series L (Tax Exempt) (rated 'AA-', Stable Outlook) that have been deposited in the series 2016-XF0438 trust.

The long-term 'AA', Stable Outlook ratings assigned to the series 2016-XF0439 Floater and Residual Receipts are based on the rating that Fitch has assigned to the State of Hawaii General Obligation Bonds of 2012, Series EE (rated 'AA', Stable Outlook) that have been deposited in the series 2016-XF0439 trust.

The short-term 'F1' ratings assigned to the series Floater Receipts are based on the liquidity facilities provided by Bank of America N.A. (rated 'A+/F1', Stable Outlook), which have a stated expiration date of May 15, 2017, unless such date is extended or earlier terminated.

RATING SENSITIVITIES

The short-term ratings assigned to the Floater Receipts will be adjusted upward or downward in conjunction with the short-term rating of the bank, and, in some cases, the long-term ratings of the underlying bonds deposited in the trusts. The long-term ratings assigned to the Floater Receipts and Residual Receipts are exclusively tied to the creditworthiness of the underlying bonds deposited in the trusts and will reflect all changes to such ratings.

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

Applicable Criteria

Criteria for Rating Tender Option Bonds (pub. 07 Apr 2016)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=879516

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=1004754

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1004754

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:
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@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:
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com