Fitch Rates Sacramento Municipal Utility District (CA) $200MM CP Notes, Series J 'F1+'.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 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 rating of 'F1+' to the $200,000,000 Sacramento Municipal Utility District Commercial Paper Notes, Series J (CP Notes), based upon the support of a direct pay letter of credit (LOC LOC - lines of code ) issued severally by 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. , individually and as Administrative Agent (Agent), and the California State Teachers' Retirement System (CalSTRS). The LOC is sized to cover a maximum stated amount of $200 million in principal amount of CP Notes, plus 90 days of interest calculated at 10%, based on a year of 365 days. The obligations of each of the banks are several, and not joint, and are divided as follows: The Bank of New York is obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to cover up to $153,698,630, which represents 75% of the total maximum stated amount; CalSTRS is obligated to cover up to $51,232,877, which represents the remaining 25% of the maximum stated amount. The LOC is scheduled to be issued today, Jan. 23, 2007. All CP Notes, when issued, will be sold at par. The Bank of New York Trust Company, N.A., as the Issuing and Paying Agent Paying Agent An agent who accepts payments from the issuer of a security and then distributes the payments to the holders of the security. Also known as a "disbursing agent. (I&PA), will draw on the LOC at the times and in amounts that are sufficient to provide for the timely payment of principal and interest on maturing CP Notes. The I&PA is instructed not to issue any CP Notes that together with CP Notes outstanding will exceed the amount available under the LOC to pay the principal and interest on the CP Notes due at maturity. Following the occurrence of an event of default under the Reimbursement Agreement, the Agent may direct that no additional CP Notes be issued or may direct the I&PA to draw in full on the LOC and hold such moneys to pay all outstanding CP Notes on their specified maturity dates. The rating on the CP Notes will expire on Jan. 23, 2012, the LOC expiration date as defined in the LOC, unless such date is extended or upon any prior termination of the LOC. Goldman, Sachs and Co. will serve as the dealer for the CP Notes. Proceeds of the CP Notes, when issued, will be used to finance capital improvements for the Sacramento Municipal Utility District. 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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