Fitch Rates LIPA's $328.28MM Electric System General Revenue Bonds 'AAApre'.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch assigns a rating of 'AAApre' to the following Long Island Power Authority (LIPA) Electric System General Revenue Bonds: -- $140,380,000 Series 1998A, maturing December 1, 2014 (5% coupon) and 2015; -- $68,220,000 Series 1998B, maturing April 1, 2012 (partial refunding of 5.125% coupon) and 2014 (5% coupon); -- $83,735,000 Series 2001A, maturing September 1, 2013 (5% coupon), 2014 (5% coupon), 2015, 2021 (5.375% coupon) and 2025; -- $35,945,000 Series 2003C, maturing September 1, 2014 (5.5% coupon), 2015 (5% coupon), 2017, and 2020. The bonds were refunded on July 26, 2006 with proceeds of LIPA's Electric System General Revenue Bonds, Series 2006D and other monies of LIPA. The Series 1998A refunded bonds will be redeemed on June 1, 2008 at 101%. The Series 1998B refunded bonds will be redeemed on April 1, 2008 at 101%. The Series 2001A refunded bonds will be redeemed on September 1, 2011 at par. The Series 2003C refunded bonds maturing September 1, 2020 will be redeemed on March 1, 2008 at par. All other refunded Series 2003C bonds will be redeemed on September 1, 2013 at par. The Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. , as trustee, will hold escrowed funds and securities in a segregated irrevocable trust Irrevocable Trust A trust that, once its setup, cannot be changed at all. Notes: This is to prevent fraudulent activities. See also: Exemption Trust, Trust, Unit Trust Irrevocable trust A trust that is unable to be amended, altered, or revoked. fund for the benefit of refunded bondholders. The escrowed funds are pledged for the purpose of paying interest and redemption price Redemption price See: Call price redemption price 1. The price at which an open-end investment company will buy back its shares from the owners. In most cases, the redemption price is the net asset value per share. 2. on refunded bonds. The 'AAApre' rating reflects this pledge and that all funds have been invested in direct non-callable obligations of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Any future substitute investment is also limited to direct non-callable obligations of the U.S. Causey Causey is a village in County Durham, in England. It is situated a short distance to the north of Stanley. Demgen & Moore, Inc. verified the mathematical accuracy of computations of the adequacy of receipts from the escrowed funds and securities to meet the debt service requirements of the refunded bonds, contained in schedules provided to them by Morgan Stanley, underwriter for the refunding bonds. In the opinion of Causey Demgen and Moore, receipts from the cash and securities deposited in the trust fund will be sufficient for the timely payment of the debt payment schedule on the refunded bonds. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. 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 Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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