Fitch Rates Texas Veterans' Housing Assistance Prog Fund II 2007A 'AA+/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 'AA+/F1+' to the $50,000,000 State of Texas general obligation (GO) bonds Veterans' Housing Assistance Program Fund II series 2007A. The short-term 'F1+' rating is based on the liquidity support provided by DEPFA DEPFA Deutsche Pfandbriefanstalt (German bonds Institution) BANK plc, acting through its New York Branch, in the form of a standby bond purchase agreement (SBPA SBPA Simple Branch Prediction Analysis SBPA Scottish Beer and Pub Association (UK) SBPA School of Business and Public Administration SBPA School-Based Performance Award SBPA School-Based Performance Awards ). The SBPA provides for the payment of the purchase price of tendered bonds during the weekly rate mode if remarketing proceeds are insufficient to pay the purchase price. The SBPA is sized to provide for the entire principal amount of the bonds, plus 185 days of interest at the maximum interest rate of 15%, based on a year of 365 days. The SBPA will expire on Feb. 22, 2010, unless such date is extended or upon the occurrence of other events of termination, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. its terms. Fitch's short-term rating on the bonds will expire upon any expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created or termination of the SBPA. Goldman, Sachs & Co. is the remarketing agent for the bonds. The bonds are expected to be available for delivery on or about Feb. 22, 2007. The bonds initially bear interest in the weekly rate mode and may be converted to a fixed interest rate mode. While the bonds bear interest in the weekly rate mode, interest is payable on the first business day of each June and December, commencing June 1, 2007. The bonds are subject to mandatory tender upon the first day of a fixed interest rate period; the termination, expiration, suspension, modification or replacement of the liquidity facility; and an event of default under the liquidity facility. The bonds are also subject to optional and mandatory redemption provisions. The 'AA+' rating is based on the GO rating assigned by Fitch to the State of Texas. The 'AA+' rating on Texas GO bonds reflects the state's low debt and conservative financial operations and an economy that has expanded and diversified. Financial pressures include the demands that rapid growth place on the state's consumption-based tax system, large transportation needs, and remedial actions A remedial action is a change made to a nonconforming product or service to address the deficiency. Rework and repair are generally the remedial actions taken on products, while services usually require additional services to be performed to ensure satisfaction. necessary to accommodate future funding shortfalls as the state enlarges funding of school finance to provide local property tax relief. The Stable Outlook reflects the state's strong economic and revenue growth and sizeable balances. The proceeds of the series 2007A bonds will be deposited in the Veterans' Housing Assistance Fund II, a fund administered by the Veterans' Land Board of the State of Texas and made available to make Home Loans to eligible Texas veterans. 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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