Fitch Rates J.P. Morgan PUTTERs/DRIVERs, Series 5010 Trust

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings assigns the following ratings to the Puttable Tax-Exempt Receipts (PUTTERs), Derivative Inverse Tax-Exempt Receipts (DRIVERs) and Custodial Receipts of the J.P. Morgan PUTTERs/DRIVERs Trust series listed below:

--PUTTERs, Series 5010 'AA-/F1+', Stable Outlook; DRIVERs, Series 5010 'AA-', Stable Outlook; Custodial Receipts, Series 5010 'AA-', Stable Outlook.

KEY RATING DRIVERS

The 'AA-' ratings assigned to the PUTTERs, DRIVERs and Custodial Receipts are based on the higher of the ratings that Fitch has assigned to the Michigan Finance Authority Hospital Revenue Bonds (McLaren Health Care) Series 2016 (rated 'AA-', Stable Outlook) deposited with the custodian and the irrevocable direct-pay letter of credit (LOC) issued by JPMorgan Chase Bank, N.A. (rated 'AA-/F1+', Outlook Stable), which secures the Custodial Receipts deposited in the series 5010 trust. The stated expiration date of the LOC supporting the Custodial Receipts is July 27, 2017, unless such date is extended or earlier terminated. The stated expiration date of the tender option provided by JPM as tender option provider for the PUTTERs is July 27, 2017, unless such date is extended or earlier terminated.

The LOC supports the payment of principal and interest on the custodial receipts deposited in the trust in addition to payments due upon a mandatory tender event under the custody agreement. In the event that JPM has not honored the draw on the LOC in full accordance with its terms, the principal and interest amount payable on the underlying bonds held by the custodian amount shall be paid to the holder of the custodial receipts.

The liquidity facility provides for the payment of the principal component of purchase price plus an amount equal to 185 days of interest calculated at a maximum rate of 4.095%, based on a year of 360 days for tendered bonds 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 under the standard terms and provisions of trust agreement. The trustee is obligated to make timely draws on the liquidity facilities to pay purchase price in the event of insufficient remarketing proceeds, and in connection with the expiration or termination of the tender option, except in the case of the tender option termination events permitting immediate termination of the tender option.

RATING SENSITIVITIES

The long-term ratings assigned to the PUTTERs, DRIVERs and Custodial Receipts are based on the higher of the rating assigned to the creditworthiness of the underlying bonds and the long-term rating that Fitch maintains on the bank providing credit enhancement. Changes to one or both of these ratings may affect the long-term rating assigned to the PUTTERs, DRIVERs and Custodial Receipts. The short-term rating assigned the PUTTERs 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 underlying assets deposited in the trust.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria

Criteria for Rating Tender Option Bonds (pub. 07 Apr 2016)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=879516

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

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=862222

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1009620

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1009620

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/20160728006086/en/

Fitch Ratings
Primary Analyst
Richard Park
Director
+1-212-908-0289
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Linda Friedman
Senior Director
+1-212-908-0727
or
Committee Chairperson
Joseph Staffa
Senior Director
+1-212-908-0829
or
Media Relations:
Elizabeth Fogerty, New York, +1 212-908-0526
Email: [email protected]

Source: Fitch Ratings

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