Fitch Affirms Jacksonville, FL CP Notes Series A at 'F1'

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed the short-term 'F1' rating assigned to the City of Jacksonville, Florida commercial paper notes series A (the notes). A maximum of $75,000,000 aggregate principal amount of authorized notes may be outstanding at any given time.

The rating action is in connection with (i) the substitution of the current irrevocable direct-pay letter of credit (LOC) provided by Barclays Bank PLC ('A/F1'/Stable Outlook) supporting the notes, with a LOC to be provided by Bank of America, National Association, (BANA, 'A+/F1'/Stable Outlook) and (ii) the reoffering of the notes.

KEY RATING DRIVERS

The short-term rating on the notes was affirmed at 'F1' based on the support of the substitute LOC issued by BANA which has a stated expiration date of Sept. 8, 2019, unless extended or earlier terminated. The BANA substitute LOC provides coverage for the principal amount of the notes and interest on the maturity dates of the notes.

U.S. Bank National Association continues as the Deputy Registrar and Paying Agent (DRPA) for the notes and as DRPA is directed to request an advance under the LOC to pay principal and interest on maturing notes. The substitute LOC provides sufficient coverage for the principal amount of notes and 270 days of interest calculated at 10% based upon a 365-day year.

The notes are being issued at par, with interest due at maturity. Following the occurrence of an event of default under the LOC, BANA may direct the IPA to immediately stop the issuance of any additional notes. The bank will also notify the IPA that the stated amount of the LOC shall be permanently reduced to the principal amount of notes then outstanding and interest due thereon, and shall be further permanently reduced following the maturity of any such notes. In such event, the substitute LOC will expire after all the notes supported by such LOC mature and have been paid from funds drawn on the substitute LOC. In addition, BANA may issue a final drawing notice directing the DRPA to draw on its LOC for the principal of and interest due on all notes outstanding, in which case the LOC will expire on the earlier of (a) the 15th calendar day after the date on which the IPA received the final drawing notice and (b) the date on which the drawing resulting from the delivery of the final drawing notice is honored. J.P. Morgan Securities LLC continues as the dealer for the notes.

RATING SENSITIVITIES

The rating is exclusively tied to the short-term rating that Fitch maintains on the substitute bank providing the LOC and will reflect all changes to that rating.

Additional information is available at www.fitchratings.com

Applicable Criteria

Rating Criteria for Letter of Credit-Supported Bonds and Commercial Paper (pub. 05 Apr 2016)

https://www.fitchratings.com/site/re/878782

U.S. Municipal Structured Finance Criteria (pub. 23 Feb 2015)

https://www.fitchratings.com/site/re/862222

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1011391

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1011391

Endorsement Policy

https://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/20160908006415/en/

Fitch Ratings
Primary Analyst
Mario Civico
Senior Director
+1-212-908-0796
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Richard Park
Director
+1-212-908-0289
or
Committee Chairperson
Linda Friedman
Senior Director
+1-212-908-0727
or
Media Relations
Elizabeth Fogerty, +1 212-908-0526
[email protected]

Source: Fitch Ratings

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