NEW YORK--(BUSINESS WIRE)--Fitch Ratings assigns the following ratings to the RBC Municipal Floater Certificates (Floater Certificates), RBC Municipal Residual Certificates (Residual Certificates) and Trust Receipts of the RBC Municipal Products, LLC Trust series listed below:
--Floater Certificates, Series E-74 'AA/F1+', Negative Outlook; Residual Certificates, Series E-74 'AA', Negative Outlook; Trust Receipts, Series 2016-E74 'AA', Negative Outlook.
--Floater Certificates, Series E-75 'AA/F1+', Negative Outlook; Residual Certificates, Series E-75 'AA', Negative Outlook; Trust Receipts, Series 2016-E75 'AA', Negative Outlook.
KEY RATING DRIVERS
The long-term 'AA', Negative Outlook assigned to the Floater and Residual Certificates and Trust Receipts is based on the rating that Fitch has assigned to the irrevocable direct-pay letters of credit (LOCs) issued by Royal Bank of Canada, acting through a New York branch (RBC; 'AA/F1+', Negative Outlook), which secure the Trust Receipts deposited in the trusts. The LOC supporting the 2016-E74 trusts receipts has a stated expiration date of Nov. 9, 2017, unless such date is extended or earlier terminated. The LOC supporting the 2016-E75 trusts receipts has a stated expiration date of Dec. 26, 2016, unless such date is extended or earlier terminated.
The short-term 'F1+' ratings are based on the liquidity facilities provided by RBC, which have stated expiration dates of Nov. 9, 2017 for series E-74 and Dec. 26, 2016 for series E-75, unless such dates are extended or earlier terminated. The initial rate mode for each series of Floater Certificates will be the SIFMA Term Mode, which expires on Oct. 3, 2016. Floater Certificate holders may not optionally tender their bonds in a term mode that is greater than 30 days in length and therefore the short-term rating assigned to the floaters will only reflect the liquidity bank's obligation to fund the payment of purchase price for unremarketed floaters following a mandatory tender.
The long-term ratings assigned to the Floater and Residual Certificates and Trust Receipts are exclusively based on the bank providing the LOCs and will reflect all changes to that rating. The short-term ratings assigned to the Floater Certificates will be adjusted upward or downward in conjunction with the short-term rating of the bank providing the liquidity facilities.
Additional information is available at www.fitchratings.com
Criteria for Rating Tender Option Bonds (pub. 07 Apr 2016)
U.S. Municipal Structured Finance Criteria (pub. 23 Feb 2015)
Dodd-Frank Rating Information Disclosure Form