NEW YORK--(BUSINESS WIRE)--Fitch Ratings affirms the following ratings assigned to the floaters and residuals of the Wells Fargo Stage Trust series listed below:
--Series 2010-3C: floaters 'AA/F1+', Stable Outlook; residuals 'AA', Stable Outlook;
--Series 2011-94C: floaters 'AA/F1+', Stable Outlook; residuals 'AA', Stable Outlook;
--Series 2011-107C: floaters 'AA/F1+', Stable Outlook; residuals 'AA', Stable Outlook;
--Series 2011-120C: floaters 'AA/F1+', Stable Outlook; residuals 'AA', Stable Outlook;
--Series 2011-136C: floaters 'AA+/F1+', Stable Outlook; residuals 'AA+', Stable Outlook.
KEY RATING DRIVERS
The affirmation of the long- and short-term ratings are in connection with amendments made to the trust agreements to restructure the trusts to not constitute a covered fund under Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Following the amendments, the floaters will bear interest over a period of time defined as a term period. Term periods are set by the applicable sponsor and will be between 90 and 366 days long and will utilize the index method or fixed method as the applicable reset rate method. The initial reset rate method for each of the floaters above will be the index method.
The long-term 'AA', Stable Outlook ratings assigned to the series 2010-3C floaters and residuals continues to be based on the higher of the rating that Fitch has assigned to San Francisco Airport Commission, Second Series Revenue Refunding Bonds Series 2010F (rated 'A+', Stable Outlook) that have been deposited in the Trust and the rating that Fitch has assigned to the custodial level credit enhancement in the form of a swap agreement provided by Wells Fargo Bank, N.A. (rated 'AA/F1+', Stable Outlook) securing the Custodial Receipts deposited in the Trust.
The long-term 'AA', Stable Outlook ratings assigned to the series 2011-94C floaters and residuals continues to be based on the higher of the rating that Fitch has assigned to The Board of Port Commissioners of the City of Oakland, Port of Oakland Refunding Revenue Bonds 2011 Series O (AMT) (rated 'A+', Stable Outlook) that have been deposited in the Trust and the rating that Fitch has assigned to the custodial level credit enhancement in the form of a swap agreement provided by Wells Fargo Bank, N.A. securing the Custodial Receipts deposited in the Trust.
The long-term 'AA', Stable Outlook ratings assigned to the series 2011-107C floaters and residuals continues to be based on the higher of the rating that Fitch has assigned to Metropolitan Washington Airports Authority Airport System Revenue Refunding Bonds, Series 2011C (rated 'AA-', Stable Outlook) that have been deposited in the Trust and the rating that Fitch has assigned to the custodial level credit enhancement in the form of a swap agreement provided by Wells Fargo Bank, N.A. securing the Custodial Receipts deposited in the Trust.
The long-term 'AA', Stable Outlook rating assigned to the series 2011-120C floaters and residual certificates continues to be based on the custodial receipts deposited in the trust. The custodial receipts evidence a beneficial interest in the underlying bonds (not rated by Fitch) and are supported by custodial level credit enhancement in the form a swap agreement provided by Wells Fargo Bank, N.A.
The long-term 'AA+', Stable Outlook rating assigned to the series 2011-136C floaters and residual certificates continues to be based on the State of North Carolina Capital Improvement Limited Obligation Bonds, Series 2011C (currently rated 'AA+', Stable Outlook) deposited in the trust.
The amendments to the trust agreements will also remove the floater holder's right to optionally tender their floaters for purchase. At the end of each term period, the floaters will be subject to mandatory tender and remarketing by the remarketing agent. The liquidity bank is obligated the make payment for the purchase price of tendered floaters that are not remarketed following a mandatory tender. As a result of these changes, the short-term rating assigned to the floaters will reflect the liquidity bank's obligation to fund the payment of purchase price for unremarketed floaters following a mandatory tender only.
The 'F1+' rating assigned to each of the floater certificates is based on the liquidity facilities provided by Wells Fargo Bank, N.A. (rated 'AA/F1+', Stable Outlook), which has a stated expiration date of Jan. 6, 2017 unless such date is extended or earlier terminated.
RATING SENSITIVITIES
The short-term rating assigned to the floater certificates reflects 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 assets deposited in the trust. The long-term ratings assigned to the series 2010-3C, 2011-94C and 2011-107C floater and residual certificates are tied to the long-term rating assigned to the creditworthiness of the underlying bonds deposited in the trusts 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 ratings assigned to the floater and residual certificates. The long-term rating assigned to the series 2011-120C floater and residual certificates is exclusively tied to the long-term rating that Fitch maintains on the bank providing credit enhancement and will reflect all changes to that rating. The long-term ratings assigned to the series 2011-136C floater and residual certificates are exclusively tied to the long-term rating assigned to the creditworthiness of the underlying bonds deposited in the trust and will reflect all changes to that rating.
Additional information is available at 'www.fitchratings.com'
Applicable Criteria
Guidelines for Rating Tender Option Bonds (pub. 10 Apr 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864040
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=997593
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=997593
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.