Fitch Upgrades Main Street Natural Gas (Georgia) Series 2006A Revs to 'AA-'.SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden -- Fitch upgrades the rating on Main Street Natural Gas, Georgia's (Main Street) $528 million gas project revenue bonds, series 2006A to 'AA-' from 'A+'. The Rating Outlook is changed to Stable from Positive. The rating action is the result of Fitch's upgrade of the long-term Issuer Default Rating of JPMorgan Chase & Co. to 'AA-' from 'A+'. Bond proceeds were used to fund a natural gas prepay transaction between Main Street and J.P. Morgan Ventures Energy Corporation. Main Street is a Georgia non-profit corporation, established to secure long-term, reliable natural gas needs for its participants. The transaction represents a 15-year gas supply on behalf of five participants. The Municipal Gas Authority of Georgia, which is the largest participant and accounts for 76% of the transaction, will administer the gas prepay transaction on behalf of Main Street. Given the structured nature of the transaction, the rating is determined by the credit quality of: --The guaranty provider for the natural gas supplier associated with the series 2006A bonds - JPMorgan Chase & Co. rated 'AA-' by Fitch; and --The commodity swap Commodity Swap A swap where exchanged cash flows are dependent on the price of an underlying commodity. This is usually used to hedge against the price of a commodity. Notes: providers - Bank of Montreal “BMO” redirects here. For the mathematics competition, see British Mathematical Olympiad. Bank of Montreal/Banque de Montréal (TSX: BMO, NYSE: BMO) is Canada's fourth largest bank[1], and is classified as a Domestic Chartered Bank (Schedule I). (rated 'AA-/F1+' with a Stable Outlook by Fitch) and UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System (rated 'AA+/F1+' with a Stable Outlook by Fitch). Going forward, the bond ratings will move with Fitch's future assessment of these entities. The performance obligation of the five participants is not a material factor in the rating given the support provided by a Customer Insurance Policy that secures participant payments for delivered gas (up to three months) until such time as the gas can be remarketed. While the gas is being remarketed, J.P. Morgan Ventures Energy Corporation, or its guarantor, JPMorgan Chase & Co., (hereafter referred to as JPMorgan) 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 pay Main Street a price at least equal to the first of the month index price minus a remarketing fee. 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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