Market Overview

Fitch Rates $500MM TX Pub Fin Auth Rev Notes Ser 2012 'AAApre'; Outlook Negative

NEW YORK--(BUSINESS WIRE)--

Fitch Ratings has assigned a rating of 'AAApre', Negative Outlook to the $500,000,000 Texas Public Finance Authority Class 1 Revenue Notes (Texas Windstorm Insurance Association Program), Taxable Series 2012, defeased on Dec. 17, 2012.

Pursuant to an irrevocable deposit agreement, the Texas Treasury Safekeeping Trust Company holds a special account solely for the benefit of the defeased noteholders. All funds and securities held in this account are pledged irrevocably to the payment when due of interest on the defeased notes and principal upon the mandatory tender date of Feb. 1, 2013. The 'AAApre', Negative Outlook rating reflects this pledge and that all funds have been invested in direct non-callable obligations of the United States. The U.S. full faith and credit rating is currently rated 'AAA', Negative Outlook by Fitch. The deposit agreement does not provide for any substitute or additional investments.

Grant Thornton verified the mathematical accuracy of computations relating to the adequacy of income from deposited securities to pay debt service requirements of the defeased notes. These computations were contained in schedules provided to them by FirstSouthwest, financial advisor for the defeasance of the notes. According to the Grant Thornton verification report, the securities deposited will produce amounts necessary to provide for timely payment of the debt payment schedule on the defeased notes.

The 'AAApre' rating applies to the notes with the following CUSIP number:

882756 V89

Additional information is available at www.fitchratings.com. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'U.S. Municipal Structured Finance Rating Criteria', Feb. 28, 2012,

--'Guidelines for Rating Pre-Refunded Municipal Bonds', December 4, 2012.

Applicable Criteria and Related Research:

U.S. Municipal Structured Finance Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=672570

Guidelines for Rating Prerefunded U.S. Municipal Bonds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=695465

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 Ratings
Primary Analyst
Trudy Zibit, +1-212-908-0689
Managing Director
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Kasia Reed, +1-212-908-0500
or
Committee Chairperson
Ronald McGovern, +1-212-908-0513
Senior Director
or
Media Relations
Elizabeth Fogerty, New York, +1-212-908-0526
elizabeth.fogerty@fitchratings.com

 

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters