Fitch Rates Fort Bend Independent School District (TX) CP Notes 'F1+'

NEW YORK--()--Fitch Ratings assigns a rating of 'F1+' to the $100,000,000 Fort Bend Independent School District (district) unlimited tax commercial paper (CP) notes, series A (notes).

KEY RATING DRIVERS

The rating is based on the support provided by a liquidity facility issued in the form of a revolving credit agreement (RCA) issued by JPMorgan Chase Bank, National Association (JPM; rated 'AA-/F1+', Stable Outlook) which has a stated expiration date of Oct. 10, 2019, unless extended or earlier terminated. The RCA provides coverage for the principal amount of the notes and interest due on the maturity dates of the notes. Note issuance cannot exceed the RCA commitment amount. Unenhanced general obligation unlimited tax bonds of the district are rated 'AA+', Stable Outlook. For more information on the credit of the district, see Fitch's rating action commentary, dated May 18, 2016, available at www.fitchratings.com.

Amegy Bank, a division of ZB, National Association, as Issuing and Paying Agent (IPA) for the notes is directed to request an advance under the RCA whenever district revenues and proceeds of the sale of rollover notes are insufficient to pay maturing notes. The RCA provides sufficient coverage for the principal amount of notes and 270 days of interest calculated at 10% based upon a 365 day year.

All notes will be issued at par, with interest due at maturity. Following the occurrence of an event of default under the RCA, JPM may direct the IPA to immediately stop the issuance of any additional notes. In addition, the RCA may be terminated at JPM's option upon the occurrence of specified immediate termination events. The dealer for the notes is Citigroup Global Markets Inc.

RATING SENSITIVITIES

The rating reflects the short-term rating that Fitch maintains on the bank providing liquidity support and will be adjusted upward or downward in conjunction with changes to the short-term rating of the bank and in some cases, the long-term rating of the obligor issuing the CP notes.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Rating Criteria for Variable-Rate Demand Obligations and Commercial Paper Issued with External Liquidity Support (pub. 28 Jan 2016)

https://www.fitchratings.com/site/re/876837

U.S. Municipal Structured Finance Criteria (pub. 23 Feb 2015)

https://www.fitchratings.com/site/re/862222

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1012061

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1012061

Endorsement Policy

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

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Contacts

Fitch Ratings
Primary Analyst
Joseph Staffa
Senior Director
+1-212-908-0829
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Richard Park
Director
+1-212-908-0289
or
Committee Chairperson
Mario Civico
Senior Director
+1-212-908-0796
or
Media Relations
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Joseph Staffa
Senior Director
+1-212-908-0829
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Richard Park
Director
+1-212-908-0289
or
Committee Chairperson
Mario Civico
Senior Director
+1-212-908-0796
or
Media Relations
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com