Fitch to Rate IFA Lease Appropriation Bonds 'AAApre/F1+'; Outlook Stable

NEW YORK--(BUSINESS WIRE)-- On the effective date of May 21, 2015, Fitch Ratings will assign a rating of 'AAApre/F1+' to the $10,235,000 Indiana Finance Authority (Authority) Lease Appropriation Bonds (Convention Center Expansion Project) series 2008A-2 (partial refunding) (Convention Center refunded bonds) and the Authority's Lease Appropriation Bonds ((Stadium Project), consisting of $70,000,000 Series 2005A-2, $80,000,000 Series 2005A-3; $70,000,000 series 2007A-1, $42,100,000 series 2007A-2 (partial refunding) and $6,935,000 Series 2007A-3 (partial refunding) (collectively, Stadium refunded bonds). The ratings apply only to the CUSIPs listed below.

KEY RATING DRIVERS

The 'AAApre/F1+'; Stable Outlook ratings will be based on deposits of cash into two separate irrevocable escrow accounts, one for the Convention Center refunded bonds and one for the Stadium refunded bonds, to be held in trust uninvested by the escrow agent, The Bank of New York Mellon Trust Company, and pledged to holders of the related refunded bonds. The cash held by the escrow agent in each escrow account will be collateralized with U.S. treasury obligations until the redemption, or earlier payment, of the bonds on June 22, 2015. The U.S. full faith and credit is currently rated 'AAA'; Stable Outlook by Fitch.

Convention Center and Stadium refunded bondholders will retain the right to tender their bonds to the escrow agent. All payments of principal, interest and purchase price on the bonds will be made by the escrow agent from cash held in the escrow accounts. The short-term ratings on the refunded bonds are also supported by the short-term 'F1+' rating assigned by Fitch to The Bank of New York Mellon Trust Company, N.A. ('AA-/F1+'; Stable Outlook).

Convention Center refunded bonds will remain in a weekly rate mode and bondholders will retain the right to tender their bonds to the escrow agent upon requisite notice. Stadium refunded bonds will remain in a daily rate mode and bondholders will retain the right to tender their bonds following requisite notice to the escrow agent. The escrow agent will pay the purchase price of any tendered refunded bonds from the related escrow account. Tendered refunded bonds will not be remarketed, but will be canceled by the escrow agent. The escrow agent has no power to invest funds held in the escrow account.

The Convention Center refunded bonds will be partially refunded on May 21, 2015 with proceeds of the Authority's Lease Appropriation Refunding Bonds (Convention Center Expansion Project), Series 2015 and other funds of the Authority. The series 2005A-2, 2005A-3 and 2007A-1 Stadium refunded bonds will be refunded on May 21, 2015 with proceeds of the Authority's Lease Appropriation Refunding Bonds (Stadium Project), Series 2015 and other funds of the Authority. The series 2007A-2 and 2007A-3 Stadium refunded bonds will be partially refunded on May 21, 2015 with proceeds of the Authority's Lease Appropriation Refunding Bonds (Stadium Project), Series 2015 and other funds of the Authority.

Pursuant to two separate irrevocable escrow agreements, the escrow agent will hold separate special irrevocable escrow accounts, one for the benefit of the Convention Center refunded bondholders and one for the benefit of the Stadium refunded bondholders. All cash held in each respective escrow account is pledged irrevocably to the payment when due of interest on the refunded bonds and the payment of principal upon redemption or earlier tender and remarketing agent fees. All Convention Center and Stadium refunded bonds will be redeemed on June 22, 2015 at a price of par plus accrued interest.

Crowe Horwath LLP verified the mathematical accuracy of computations relating to the adequacy of income from escrowed funds to pay debt service requirements of the refunded bonds and remarketing agent fees. These computations were contained in schedules provided to them by Goldman, Sachs & Co. for the Convention Center refunded bonds and Public Financial Management for the Stadium refunded bonds. According to the Crowe Horwath verification reports, the schedules demonstrating adequacy of funds deposited to pay principal and interest on bonds when needed and remarketing agent fees, provided to them by Goldman, Sachs and Public Financial Management, are mathematically accurate. The escrow agent is not authorized to invest funds during the period of the escrow and no additional verification reports are contemplated.

RATING SENSITIVITIES

The 'AAApre' rating is exclusively tied to the U.S. sovereign creditworthiness and will reflect all changes to that rating. The 'F1+' rating is tied to U.S. sovereign creditworthiness and is additionally supported by the short-term rating of The Bank of New York Mellon Trust Company, N.A.

The 'AAApre/F1+ ', stable outlook rating applies to the Convention Center refunded bonds with the following CUSIP number:

45506DRW7

The 'AAApre/F1+' stable outlook rating applies to the Stadium refunded bonds with the following CUSIP numbers:

455057J75

455057J83

455057TP4

45506DRS6

45506DRU1

Additional information is available at www.fitchratings.com.

Applicable Criteria and Related Research:

--'U.S. Municipal Structured Finance Criteria' (Feb. 23, 2015);

--'Guidelines for Rating Prerefunded U.S. Municipal Bonds' (Dec. 9, 2014).

Applicable Criteria and Related Research:

U.S. Municipal Structured Finance Criteria

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

Guidelines for Rating Prerefunded U.S. Municipal Bonds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=818549

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/20150518006745/en/

Fitch Ratings
Primary Analyst
Janet Rosen
Analytical Consultant
+1-312-368-3172
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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