Fitch Affirms 3 Series of Utility Debt Securitization Authority Restructuring Bonds

NEW YORK--()--Fitch Ratings has affirmed all outstanding classes of Utility Debt Securitization Authority Restructuring Bonds series 2013T, 2013TE, and 2015. A full list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The series are performing within expectations, with levels of outstanding principal in-line with their targeted amortization schedules. Additionally, the true-up mechanism continues to provide adequate credit support for all outstanding classes.

RATING SENSITIVITIES

As part of Fitch's initial rating sensitivity, Fitch conducted a break the bond case which provides an alternative means by which to measure the potential effects of rapid, significant declines in power consumption while capping the residential securitization charges at 20% of the total customer bill. This analysis determines the maximum level of forecasted energy decline that would cause a default in required payments on the securitization or cause the tariff charge to exceed 20% of the total residual customer bill. Despite this severe decline in consumption, due to the true-up mechanisms, the tariff charges are able to pay all debt service by the legal final maturity date.

For further detail on the rating sensitivity analysis for Utility Tariff Bonds, please refer to Fitch's criteria titled 'Rating Criteria for U.S. Utility Tariff Bonds' available at 'www.fitchratings.com' or by clicking on the link.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.

REPRESENTATIONS, WARRANTIES AND ENFORCEMENT MECHANISMS

A description of the transaction's representations, warranties and enforcement mechanisms (RW&Es) that are disclosed in the offering document and which relate to the underlying asset pool is available by accessing the appendix referenced under Related Research below. The appendix also contains a comparison of these RW&Es to those Fitch considers typical for the asset class as detailed in the Special Report titled 'Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions,' dated May 31, 2016.

Fitch has affirmed the following ratings for Utility Debt Securitization Authority Restructuring Bonds Series 2013T, 2013TE, and 2015:

Series 2013T

--T-1 bonds at 'AAAsf'; Outlook Stable;

--T-2 bonds at 'AAAsf'; Outlook Stable;

--T-3 bonds at 'AAAsf'; Outlook Stable;

--T-4 bonds at 'AAAsf'; Outlook Stable.

Series 2013TE

--TE-4 bonds at 'AAAsf'; Outlook Stable;

--TE-5 bonds at 'AAAsf'; Outlook Stable;

--TE-6 bonds at 'AAAsf'; Outlook Stable;

--TE-7 bonds at 'AAAsf'; Outlook Stable;

--TE-8 bonds at 'AAAsf'; Outlook Stable;

--TE-9 bonds at 'AAAsf'; Outlook Stable;

--TE-10 bonds at 'AAAsf'; Outlook Stable;

--TE-11 bonds at 'AAAsf'; Outlook Stable;

--TE-12 bonds at 'AAAsf'; Outlook Stable;

--TE-13 bonds at 'AAAsf'; Outlook Stable;

--TE-14 bonds at 'AAAsf'; Outlook Stable;

--TE-15 bonds at 'AAAsf'; Outlook Stable;

--TE-16 bonds at 'AAAsf'; Outlook Stable;

--TE-17 bonds at 'AAAsf'; Outlook Stable.

Series 2015

--T-1 bonds at 'AAAsf'; Outlook Stable;

--T-2 bonds at 'AAAsf'; Outlook Stable;

--T-3 bonds at 'AAAsf'; Outlook Stable;

--T-4 bonds at 'AAAsf'; Outlook Stable.

--T-5 bonds at 'AAAsf'; Outlook Stable;

--T-6 bonds at 'AAAsf'; Outlook Stable;

--T-7 bonds at 'AAAsf'; Outlook Stable;

--T-8 bonds at 'AAAsf'; Outlook Stable;

--T-9 bonds at 'AAAsf'; Outlook Stable;

--T-10 bonds at 'AAAsf'; Outlook Stable;

--T-11 bonds at 'AAAsf'; Outlook Stable;

--T-12 bonds at 'AAAsf'; Outlook Stable;

--T-13 bonds at 'AAAsf'; Outlook Stable;

--T-14 bonds at 'AAAsf'; Outlook Stable;

--T-15 bonds at 'AAAsf'; Outlook Stable;

--T-16 bonds at 'AAAsf'; Outlook Stable;

--T-17 bonds at 'AAAsf'; Outlook Stable.

--T-18 bonds at 'AAAsf'; Outlook Stable;

--T-19 bonds at 'AAAsf'; Outlook Stable;

--T-20 bonds at 'AAAsf'; Outlook Stable;

--T-21 bonds at 'AAAsf'; Outlook Stable;

--T-22 bonds at 'AAAsf'; Outlook Stable.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 01 Sep 2016)
https://www.fitchratings.com/site/re/886006

Global Structured Finance Rating Criteria (pub. 27 Jun 2016)
https://www.fitchratings.com/site/re/883130

Rating Criteria for U.S. Utility Tariff Bonds (pub. 21 Dec 2015)
https://www.fitchratings.com/site/re/875393

Related Research

Utility Debt Securitization Authority Restructuring Bonds Series 2013T and Series 2013TE - Appendix
https://www.fitchratings.com/site/re/725056

Utility Debt Securitization Authority Restructuring Bonds, Series 2015 -- Appendix
https://www.fitchratings.com/site/re/871944

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1012049

Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1012049

Endorsement Policy
https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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Contacts

Fitch Ratings
Surveillance Analyst:
Andrew Tinari, +1-312-368-3127
Associate Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson:
Hylton Heard, +1-212-908-0214
Senior Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
New York
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Surveillance Analyst:
Andrew Tinari, +1-312-368-3127
Associate Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson:
Hylton Heard, +1-212-908-0214
Senior Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
New York
sandro.scenga@fitchratings.com