Fitch Rates Various Tender Option Bond Series 2016-XM Trusts

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

--Floater Certificates Series 2016-XM0261 'AA-/F1', Stable Outlook; Residual Certificates Series 2016-XM0261 'AA-', Stable Outlook;

--Floater Certificates Series 2016-XM0263 'AA-/F1', Stable Outlook; Residual Certificates Series 2016-XM0263 'AA-', Stable Outlook;

--Floater Certificates Series 2016-XM0270 'AA-/F1', Stable Outlook; Residual Certificates Series 2016-XM0270 'AA-', Stable Outlook;

--Floater Certificates Series 2016-XM0277 'AA-/F1', Stable Outlook; Residual Certificates Series 2016-XM0277 'AA-', Stable Outlook;

--Floater Receipts Series 2016-XM0325 'AA/F1+', Stable Outlook; Residual Receipts Series 2016-XM0325 'AA', Stable Outlook;

--Floater Receipts Series 2016-XM0326 'AA/F1+', Stable Outlook; Residual Receipts Series 2016-XM0326 'AA', Stable Outlook;

--Floater Receipts Series 2016-XM0334 'AA+/F1+', Stable Outlook; Residual Receipts Series 2016-XM0334 'AA+', Stable Outlook;

--Floater Receipts Series 2016-XM0335 'AA+/F1+', Stable Outlook; Residual Receipts Series 2016-XM0335 'AA+', Stable Outlook.

KEY RATING DRIVERS

The long-term 'AA-', Stable Outlook ratings assigned to the series 2016-XM0261 Floater and Residual Certificates are based on the rating that Fitch has assigned to the Department of Veterans Affairs of the State of California home purchase revenue bonds, 2007 Series A, term bonds (rated 'AA-', Stable Outlook) that have been deposited in the 2016-XM0261 trust.

The long-term 'AA-', Stable Outlook ratings assigned to the series 2016-XM0263 Floater and Residual Certificates are based on the rating that Fitch has assigned to the Judson Independent School District Unlimited Tax School Building Bonds, Term Bonds (rated 'AA-', Stable Outlook) that have been deposited in the 2016-XF2277 trust.

The long-term 'AA-', Stable Outlook ratings assigned to the series 2016- XM0270 Floater and Residual Certificates are based on the rating that Fitch has assigned to the Pennsylvania Turnpike Commission Motor License Fund-Enhanced Turnpike Subordinate Special Revenue Bonds, Series B of 2011, term bonds (rated 'AA-', Stable Outlook) that have been deposited in the 2016-XM0270 trust.

The long-term 'AA-', Stable Outlook ratings assigned to the series 2016- XM0277 Floater and Residual Certificates are based on the rating that Fitch has assigned to the Commonwealth of Pennsylvania General Obligation Bonds, First Series of 2013, serial bonds (rated 'AA-', Stable Outlook) that have been deposited in the 2016-XM0277 trust.

The long-term 'AA', Stable Outlook ratings assigned to the series 2016-XM0325 and 2016-XM0326 Floater and Residual Receipts are based on the rating that Fitch has assigned to the District of Columbia (Washington, D.C.) General Obligation Bonds, Series 2016A (rated 'AA', Stable Outlook) that have been deposited in the series 2016-XM0325 and 2016-XM0326 trusts.

The long-term 'AA+', Stable Outlook ratings assigned to the series 2016-XM0334 and 2016-XM0335 Floater and Residual Certificates are based on the rating that Fitch has assigned to The Commonwealth of Massachusetts General Obligation Bonds, Consolidated Loan of 2016, Series E (rated 'AA+', Stable Outlook) that have been deposited in the 2016-XM0334 and 2016-XM0335 trusts.

The short-term 'F1' ratings assigned to the series 2016-XM0261, 2016-XM0263, 2016-XM0270 and 2016-XM0277 Floater Certificates are based on the liquidity facilities provided by Citibank, N.A. (rated 'A+/F1', Stable Outlook), which have a stated expiration date of June 1, 2017, unless such date is extended or earlier terminated.

The short-term 'F1+' rating assigned to the series 2016-XM0325, 2016-XM0326, 2016-XM0334 and 2016-XM0335 Floater Receipts is based on the liquidity facilities provided by JPMorgan Chase Bank, N.A. (rated 'AA-/F1+', Stable Outlook), which has a stated expiration date of June 22, 2017, unless such date is extended or earlier terminated.

RATING SENSITIVITIES

The short-term ratings assigned to the Floater Certificates and Receipts will be adjusted upward or downward in conjunction with the short-term ratings of the banks, and, in some cases, the long-term ratings of the underlying bonds deposited in the trusts. The long-term ratings assigned to the Floater and Residual Certificates and Floater 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=1007863

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1007863

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
Joseph Staffa
Senior Director
+1-212-908-0829
or
Committee Chairperson
Mario Civico
Senior Director
+1-212-908-0796
or
Media Relations:
Elizabeth Fogerty, New York, +1 212-908-0526
Email: 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
Joseph Staffa
Senior Director
+1-212-908-0829
or
Committee Chairperson
Mario Civico
Senior Director
+1-212-908-0796
or
Media Relations:
Elizabeth Fogerty, New York, +1 212-908-0526
Email: elizabeth.fogerty@fitchratings.com