Fitch Rates Massachusetts Water Resources Authority's CP Notes 'F1+'

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings assigns a rating of 'F1+' to the Massachusetts Water Resources Authority's $150,000,000 tax exempt commercial paper notes series 2016 (the notes).

KEY RATING DRIVERS:

The 'F1+' rating is based on the support provided by an irrevocable direct pay letter of credit (LOC) issued by TD Bank, N.A., (TD, rated 'AA-/F1+', Stable Outlook), which has a stated expiration date of April 12, 2019 unless extended or earlier terminated. The TD LOC provides coverage for the principal amount of the notes and interest due on the maturity dates of the notes.

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

All notes will be issued at par, with interest due at maturity. Following the occurrence of an event of default under the LOC, TD may direct the IPA to immediately stop the issuance of any additional notes. In such an event the LOC will expire after all the notes supported by the LOC mature and have been paid from funds drawn on the LOC. Goldman Sachs & Co. and Morgan Stanley & Co., are the dealers for the notes.

RATING SENSITIVITIES

The rating is exclusively tied to the short-term rating that Fitch maintains on the 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/creditdesk/reports/report_frame.cfm?rpt_id=878782

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 Formhttps://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1002162

Solicitation Statushttps://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1002162

Endorsement 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/20160407006335/en/

Fitch Ratings
Primary Analyst:
Linda Friedman, +1-212-908-0689
Senior Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst:
Richard Park, +1-212-908-0289
Director
or
Committee Chairperson:
Joseph Staffa, +1-212-908-0829
Senior Director
or
Media Relations:
Elizabeth Fogerty, +1-212-908-0526
New York
[email protected]

Source: Fitch Ratings

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