Fitch Affs 'F1+' S-T Rating on NYC MWFA Water & Sewer 2nd General Res Bonds Ser AA-1A / AA-1B

NEW YORK--()--Fitch Ratings affirms the 'F1+' short-term rating assigned to the New York City Municipal Water Finance Authority Water and Sewer System second general resolution revenue bonds, adjustable rate fiscal 2006 subseries AA-1A and subseries AA-1B (the bonds). The rating action is in connection with the extension of the existing liquidity facility currently provided by State Street Bank and Trust Company (State Street; rated 'AA/F1+', Stable Outlook) for the subseries AA-1A bonds and the substitution of the liquidity facility currently provided by California State Teacher's Retirement System (CaLSTRS rated 'AA+/F1+', Stable Outlook) for the subseries AA-1B bonds in the form of a standby purchase agreement (SBPA) to be provided by State Street for both series of bonds.

KEY RATING DRIVERS:

The short-term 'F1+' rating assigned to the series 2006 subseries AA-1A and AA-1B bonds is based on the liquidity support provided State Street; in the form of a substitute SBPA, which has a stated expiration date of Oct. 7, 2020, unless extended or earlier terminated, during the daily rate, two-day rate and the weekly rate modes. The long-term 'AA+', Stable Outlook rating currently assigned to the bonds continues to be based on the rating assigned by Fitch to the water and sewer system second general resolution (SGR) revenue bonds for the New York City Municipal Water Finance Authority. For more information on the long-term rating of New York City Municipal Water Finance Authority, see the press release dated May 15, 2015 on Fitch's website at www.fitchratings.com.

The substitute SBPA provides for the payment of the principal component of purchase price plus an amount equal to 35 days of interest at the maximum rate of 9%, based on a year of 365 days for tendered bonds during the daily rate, two-day rate and weekly rate modes in the event that the proceeds of a remarketing of the bonds are insufficient to pay the purchase price following an optional or mandatory tender. The substitute SBPA will expire on Oct. 7, 2020, unless such date is extended, upon conversion to a mode to other than a daily rate, two-day rate and weekly rate modes; or upon the occurrence of certain events of default which result in a mandatory tender or other events of default related to the credit of New York City Municipal Water Finance Authority which result in an automatic and immediate termination. The remarketing agent for the bonds is Goldman, Sachs & Co.

RATING SENSITIVITIES

The short-term ratings reflect the short-term rating that Fitch maintains on the bank providing liquidity support, and 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 bonds.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Rating Guidelines for Variable-Rate Demand Obligations and Commercial Paper Issued with External Liquidity Support (pub. 22 Jan 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=856189

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=992018

Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=992018

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, +1-212-908-0289
Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst:
Joseph Staffa, +1-212-908-0829
Senior Director
or
Committee Chairperson:
Mario Civico, +1-212-908-0796
Senior Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
New York
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst:
Richard Park, +1-212-908-0289
Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst:
Joseph Staffa, +1-212-908-0829
Senior Director
or
Committee Chairperson:
Mario Civico, +1-212-908-0796
Senior Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
New York
sandro.scenga@fitchratings.com