NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed two CenterPoint U.S. utility tariff bond transactions as follows:
CenterPoint Energy Restoration Bond Company, LLC 2009
-- Class A-2 at 'AAAsf'; Outlook Stable;
-- Class A-3 at 'AAAsf'; Outlook Stable.
CenterPoint Energy Transition Bond Company II, LLC Series A
-- Class A-4 at 'AAAsf'; Outlook Stable;
-- Class A-5 at 'AAAsf'; Outlook Stable.
KEY RATING DRIVERS
The transactions are performing within expectations, with levels of outstanding principal amounts in-line with the targeted amortization schedules. The true-up mechanism is performing as expected, providing adequate credit support for all outstanding classes.
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 securitizations or cause the tariff charges 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'.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to these rating actions.
Additional information is available at www.fitchratings.com.
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14
Criteria for Servicing Continuity Risk in Structured Finance (pub. 17
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
Rating Criteria for U.S. Utility Tariff Bonds (pub. 21 Dec 2015)
Dodd-Frank Rating Information Disclosure Form