Fitch Rates NYS EFC NYCMWFA 2nd Resolution Sr Bonds 'AAA'.Business Editors NEW YORK--(BUSINESS WIRE)--Sept. 17, 2003 Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. assigns a 'AAA' rating to the 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 State Environmental Facilities Corporation (EFC EFC Expected Family Contribution EFC Expect(ed) Further Clearance EFC Evangelical Fellowship of Canada EFC Evangelical Free Church EFC Eastfield College EFC Everton Football Club EFC Electronic Fee Collection ) $300 million state clean water and drinking water drinking water supply of water available to animals for drinking supplied via nipples, in troughs, dams, ponds and larger natural water sources; an insufficient supply leads to dehydration; it can be the source of infection, e.g. leptospirosis, salmonellosis, or of poisoning, e.g. revolving funds A revolving fund is a fund or account whose income remains available to finance its continuing operations without any fiscal year limitation. Within federal and state governments, law establishes revolving funds. revenue bonds (New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. Municipal Water Finance Authority project -- second resolution bonds), series 2003 I. In addition, Fitch affirms the 'AAA' rating on approximately $2.5 billion of outstanding EFC New York City Municipal Water Finance Authority Projects senior lien senior lien n. the first security interest (lien or claim) placed upon property at a time before other liens, which are called "junior" liens. (See: mortgage, deed of trust, lien, UCC-1) bonds. Proceeds from the series E bonds will be used to refinance, on a long-term basis, certain commercial paper notes issued by the New York City Municipal Water Finance Authority (NYCMWFA) to finance water pollution control and drinking water projects. The NYCMWFA's water and sewer revenue bonds are currently rated 'AA' by Fitch Ratings. The bonds are scheduled to price on Sept. 23, through a syndicate led by JPMorgan and First Albany Corporation. The EFC finances most of its state revolving fund (SRF SRF abbr. somatotropin-releasing factor ) loans to the NYCMWFA by issuing bonds (EFCNYC bonds) under a master trust indenture separate from the master financing indenture (MFI MFI Microfinance Institution MFI Money Flow Index MFI Melt Flow Index MFI Median Family Income MFI Malaria Foundation International MFI Massachusetts Family Institute MFI Multi-port Fuel Injection (automobile) ) for all other leveraged SRF participants. SRF loans made to the authority are typically funded outside the EFC's MFI pooled loan program in order to mitigate single-borrower concentration risks resulting from the authority's significant capital needs. Debt service on senior lien EFCNYC bonds is paid from authority loan repayments and reserve earnings. In addition, substantial reserves are available to pay debt service in the event of deficiencies. The bonds are further secured by released reserves from the statewide MFI on a subordinate basis. MFI reserves as of Sept. 15, 2003 were equal to approximately $818.3 million, or over 45% of the outstanding MFI bond principal at that time. The 'AAA' rating on the EFCNYC's senior bonds reflects the strong payment interruption tolerance due to substantial reserves. As of Sept. 15, 2003, reserve levels were approximately $1.27 billion, or over 50%, of outstanding EFCNYC senior bond principal. The reserves are sufficient to allow for continued performance over the life of the bonds assuming 31% defaults by the authority, and for the first six years assuming 100% defaults. This level of default tolerance combined with the highly unlikely possibility that an essential service provider such as the authority would experience a lengthy period of default provides the basis for the 'AAA' rating. Further, the simulated stress test does not include reserves released under the MFI pooled program which are available for payment of debt service and would allow the bonds to withstand longer periods of default. Combined MFI and NYCMWFA reserves total $2.1 billion, or nearly 46% of outstanding MFI and NYCMWFA debt. While the EFCNYC bonds are secured by reserves released from the MFI pooled loan program (rated 'AAA' by Fitch), the reserves are only available after meeting deficiencies for MFI senior and subordinate bonds. |
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