NEW YORK - (Business Wire) Fitch Ratings assigns a rating of 'AAA/F1+' to New York State Urban Development Corporation service contract revenue refunding bonds, $75,000,000 series 2008A-2, $25,000,000 series A-3 and $120,000,000 series 2008A-4. The long-term 'AAA' rating assigned to the bonds is based on the support of a financial guaranty insurance policy provided by Assured Guaranty Corp., which insures scheduled payments of principal and interest on the bonds, effective as of the date of issuance of the bonds. The insurance policy will extend to the maturity date of the bonds, Jan. 1, 2030. The short-term 'F1+' rating assigned to the series 2008A-2, 2008A-3 and 2008A-4 bonds is based on the liquidity support of JPMorgan Chase Bank, National Association provided by two separate standby bond purchase agreements (SBPAs).
The SBPAs provide for the payment of the purchase price of tendered bonds during the weekly or daily interest rate mode, and are sized to cover the principal portion of the purchase price and 35 days of interest at the maximum interest rate of 12%, based upon a year of 365 days. The SBPAs will expire on the stated expiration date of June 23, 2009, unless such date is extended, or upon the occurrence of certain events of termination as specified in the SBPAs. Fitch's short-term rating will expire upon any expiration or termination of a SBPA. The remarketing agent for the series 2008A-2 and A-4 bonds is Goldman Sachs & Co., and Ramirez & Co. Inc. for the series 2008A-3 bonds. The bonds are expected to be delivered on or about June 24, 2008.
The bonds initially bear interest at the weekly rate, but may be converted to a daily, bond interest term, auction rate, long-term mode or commercial paper mode. While bonds bear interest in the weekly mode, interest is payable on the first business day of each month, commencing July 1, 2008. During the weekly mode, holders have the option to tender their bonds on any business day, following required notice to the tender agent. The bonds are subject to mandatory tender: on each interest rate conversion date, except when converting between daily and weekly interest rate modes; on the day following the end of each commercial paper and term rate period; three business days prior to the expiration and on the date of substitution of a SBPA; and immediately upon receipt of notice of an event of default under the SBPA. Optional and mandatory redemption provisions also apply to the bonds.
Bond proceeds will be used to refinance outstanding bonds of the issuer.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 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
Trudy Zibit, +1-212-908-0689
(for information on the bonds)
Janet Martin, +1-212-908-0507
(for information on New York State
Urban Development Corporation)
Media Relations:
Christopher Kimble, +1-212-908-0226 (New York)
