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Oct 19, 2015 at 13:26 o\clock

Fitch to Affirm NYC MWFA Water & Sewer 2nd General Res Bonds Ser 2006 AA-1A & AA-1B at 'F1+'

NEW YORK--(BUSINESS WIRE)--On the effective date of Oct. 8, 2015, Fitch Ratings will affirm 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 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 SBPA to be provided by State Street for both series of bonds.

KEY RATING DRIVERS

On the effective date, the short-term 'F1+' rating assigned to the series 2006 subseries AA-1 and AA-1B bonds will be 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 http://tinyurl.com/qfgo5or - http://tinyurl.com/qfgo5or - 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 http://is.gd/FWmrrh - http://is.gd/FWmrrh - short-term ratings reflect the short-term rating that Fitch maintains on the http://is.gd/onQrW4 - http://is.gd/onQrW4 - 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'.

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.

href='http://www.businesswire.com/news/home/20151005006157/en/Fitch-Affirm-NYC-MWFA-Water-Sewer-2nd' - http://www.businesswire.com/news/home/20151005006157/en/Fitch-Affirm-NYC-MWFA-Water-Sewer-2nd -

http://www.youtube.com/watch?v=GV-DoisLwm0 - http://www.youtube.com/watch?v=GV-DoisLwm0 -






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