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Fitch Rates Metro Govt of Nashville & Davidson County (TN) CP Ser A&B 'F1+'

Posted : Fri, 30 Oct 2009 20:26:42 GMT
Author : Fitch Ratings
Category : Press Release
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NEW YORK - (Business Wire) Fitch Ratings assigns a rating of 'F1+' to the $183,400,000 Metropolitan Government of Nashville and Davidson County, Tennessee (Metro Government), water and sewer commercial paper consisting of $91,700,000 series A and $91,700,000 series B (CP). The rating on the series A CP is based on the standby note purchase agreement (SNPA) provided by U.S. Bank National Association (currently rated 'AA-/F1+'); and the rating on the series B CP is based on the SNPA provided by JPMorgan Chase Bank, National Association (currently rated 'AA-/F1+'). Each SNPA provides coverage for principal of CP plus an amount of interest equal to 270 days at a maximum rate of 12% based on a 360-day year. The rating on each series of CP will expire on Nov. 3, 2011, unless such date is extended, or upon any prior termination of a series SNPA.

Morgan Stanley & Co. Incorporated is the dealer for the CP. The sale date for the CP is expected to be Nov. 4, 2009.

U. S. Bank National Association, the issuing and paying agent, is directed to draw under the respective series SNPA to pay principal and accrued interest on a series of CP at maturity to the extent rollover proceeds and other amounts are insufficient. The CP will be sold at par and will bear interest at a rate not to exceed 12%. Following the occurrence of an event of default under a series SNPA, the series bank may direct the issuing and paying agent to stop issuing CP.

CP proceeds will be used to provide interim financing of capital improvements to the water and sewer systems of the Metro Government.

Additional information is available at www.fitchratings.com.

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 Ratings, New York
Mary Jane Ziga, +1-212-908-0529 (For information on the long-term rating assigned to Metro Government's water and sewer revenue obligations)
Christopher Hessenthaler, +1-212-908-0773
Ryan Greene +1-212-908-0315
or
Media Relations, New York:
Cindy Stoller, +1-212-908-0526
cindy.stoller@fitchratings.com


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