Fitch to Affirm S-T 'F1+' Rating on State of Wisconsin Transportation Rev CP

NEW YORK--()--On the effective date of April 20, 2016, Fitch Ratings will affirm the short-term 'F1+' rating assigned to the $120,000,000 State of Wisconsin transportation revenue commercial paper notes (notes).

The rating action is in connection with (i) the substitution of the current credit agreement provided severally by the California State Teachers' Retirement System (rated 'AA+/F1+', Stable Outlook) and State Street Bank and Trust Company (State Street; rated 'AA/F1+', Stable Outlook) supporting the notes, with a credit agreement to be provided solely by State Street; and (ii) the reoffering of the notes.

KEY RATING DRIVERS

On the effective date, the 'F1+' rating on the notes will be based on the support to be provided by a substitute credit agreement of State Street, which has a stated expiration date of April 20, 2019, unless extended or earlier terminated. The State Street substitute credit agreement covers principal and interest on the notes, in a combined amount of $120,000,000.

U.S. Bank National Association will continue as the Issuing and Paying Agent for the notes, and as IPA, is directed to request an advance under the substitute credit agreement whenever proceeds of the sale of rollover notes and other funds are insufficient to pay maturing notes. The substitute credit agreement provides sufficient coverage for up to $120,000,000 of principal and interest due on notes upon maturity.

All notes will be issued at par, with interest due at maturity. Following the occurrence of an event of default under the credit agreement, State Street may direct the IPA to immediately stop the issuance of any additional notes. In such event, the substitute credit agreement will expire after all the notes supported by it mature and have been paid from funds drawn on it. In addition, the substitute credit agreement may be terminated by State Street upon the occurrence of specified immediate termination events. The dealers for the notes continue to be Goldman, Sachs & Co., Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC.

RATING SENSITIVITIES

The rating reflects the short-term rating that Fitch maintains on the substitute 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 State of Wisconsin's transportation revenue bond program and general obligations.

Additional information is available at www.fitchratings.com.

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
Linda Friedman
Senior Director
+1-212-908-0727
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Janet Rosen
Analytical Consultant
+1-312-368-3172
or
Committee Chairperson
Mario Civico
Senior Director
+1-212-908-0796
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Linda Friedman
Senior Director
+1-212-908-0727
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Janet Rosen
Analytical Consultant
+1-312-368-3172
or
Committee Chairperson
Mario Civico
Senior Director
+1-212-908-0796
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com