Fitch Takes Various Rating Actions on Tender Option Bond Series 2016-ZM0168 Trust

NEW YORK--()--Fitch Ratings has taken the following rating actions on Tender Option Bond Series 2016-ZM0168 Trust:

--Trust Receipts series 2016-ZM0168 assigned 'AA' rating, Negative Outlook;

--Puttable floating rate receipts (floater receipts) series 2016-ZM0168 upgraded to 'AA/F1+' from 'BBB/F2';

--Inverse floating rate receipts (residual receipts) series 2016-ZM0168 upgraded to 'AA', Negative Outlook.

The long-term rating for the floater receipts and residual receipts is removed from Rating Watch Negative and assigned a Negative Outlook.

KEY RATING DRIVERS

The long-term rating actions are in connection with the transfer of the underlying bonds deposited in the Tender Option Bond Series 2016-ZM0168 Trust to The Bank of New York Mellon, as CE Trustee, and the provision of credit enhancement in the form of an irrevocable direct-pay letter of credit (LOC) provided by Royal Bank of Canada, acting through a New York branch (RBC rated 'AA/F1+', Negative Outlook), to secure the Trust Receipts deposited in the series 2016-ZM0168 trust.

Following the addition of the credit enhancement, the rating assigned to the floater, residual and trust receipts will be based on the higher of the ratings that Fitch has assigned to the Metropolitan Pier and Exposition Authority, McCormick Place Expansion project bonds, series 2012A (rated 'BBB', Rating Watch Negative) deposited with the CE trustee and RBC, the provider of the LOC securing the Trust Receipts deposited in the trust. The letter of credit supporting the trust receipts has a stated expiration date of March 16, 2017, unless such date is extended or earlier terminated.

The upgrade of the short-term rating to 'F1+' from 'F2', reflects the decreased risk of the occurrence of a tender option termination event due to the upgrade of the underlying assets deposited in the trust to 'AA', Negative Outlook from 'BBB', Rating Watch Negative. The liquidity facility continues to be provided by RBC and has a stated expiration date of March 15, 2017, unless such date is extended or earlier terminated.

RATING SENSITIVITIES

The long-term ratings assigned to the floater, residual and trust receipts are based on the higher of the rating assigned to the creditworthiness of the underlying bonds and the long-term rating that Fitch maintains on the bank providing credit enhancement. Changes to one or both of these ratings may affect the long-term rating assigned to the floater, residual and trust receipts. The short-term rating assigned 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 rating of the underlying assets deposited in the trust.

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=1008885

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1008885

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
Joseph Staffa
Senior Director
+1-212-908-0829
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
Joseph Staffa
Senior Director
+1-212-908-0829
or
Media Relations:
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com