Fitch Affirms 2 Utility Tariff Transactions

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings affirms the ratings on CenterPoint Energy Transition Bond Company II, LLC Series A and CenterPoint Energy Restoration Bond Company, LLC 2009. A full list of rating actions follows at the end of this press release.

KEY RATING DRIVERSThe transactions are performing within expectations, with levels of outstanding principal amounts in-line with their targeted amortization schedules. The true-up mechanism in each transaction is performing as expected, providing adequate credit support for all outstanding classes.

RATING SENSITIVITIESAs 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.

DUE DILIGENCE USAGENo third party due diligence was provided or reviewed in relation to this rating action.

Fitch affirmed the following ratings:

CenterPoint Energy Restoration Bond Company, LLC 2009--A-2 notes at 'AAAsf; Outlook Stable;--A-3 notes at 'AAAsf; Outlook Stable.

CenterPoint Energy Transition Bond Company II, LLC Series A--A-4 notes at 'AAAsf; Outlook Stable;--A-5 notes at 'AAAsf; Outlook Stable.

Additional information is available at www.fitchratings.com.

Applicable CriteriaGlobal Structured Finance Rating Criteria (pub. 31 Mar 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268Rating Criteria for U.S. Utility Tariff Bonds (pub. 23 Dec 2014)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=829808

Additional DisclosuresDodd-Frank Rating Information Disclosure Formhttps://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=987323Solicitation Statushttps://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=987323Endorsement Policyhttps://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150701006591/en/

Fitch Ratings
Primary Analyst
Andrew Tinari
Analyst
+1-312-368-3127
Fitch Ratings, Inc.
70 West Madison
Chicago, IL 60602
or
Committee Chairperson
Hylton Heard
Senior Director
+1-212-908-0214
or
Media Relations
Sandro Scenga, New York, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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