Fitch Rates RBC Municipal Products, LLC Trust, Series E-128.
New York: Fitch Ratings has assigned the following ratings:
--RBC Municipal Floater Certificates (Floater Certificates) Series E-128 'AA'/'F1+'/Stable Outlook;
--RBC Municipal Residual Certificates (Residual Certificates) and Custodial Receipts of the RBC Municipal Products, LLC Trust Series E-128 'AA'/Stable Outlook (relating to Up to $150,000,000 State of Texas Lower Colorado River Authority Transmission Contract Revenue Revolving Notes (LCRA Transmission Services Corporation Project), Tax-Exempt Series D, due Nov. 14, 2019).
KEY RATING DRIVERS
The long-term 'AA'/Stable Outlook rating assigned to the Custodial Receipts is based on the custodial level credit enhancement provided by Royal Bank of Canada, acting through a New York branch (RBC, AA/F1+/Stable) in the form of an irrevocable direct-pay letter of credit (LOC), which secures the Custodial Receipts deposited in the trust. The LOC supporting the trust receipts deposited in the trusts expire on June 19, 2020, unless such dates are extended or earlier terminated.
The long-term 'AA'/Stable Outlook ratings assigned to the Floater and Residual Certificates are based on the rating that Fitch has assigned to Custodial Receipts deposited in the trust.
The short-term 'F1+' rating assigned to the Floater Certificates is based on the obligation of RBC to pay purchase price of tendered floaters as tender option provider. The scheduled expiration dates of the obligations of the tender option provider to make purchase price payments is June 19, 2020, unless such dates are extended or earlier terminated.
The long-term ratings assigned to the Custodial Receipts is exclusively based on the bank providing credit enhancement and will reflect all changes to that rating. The long-term ratings assigned to the Floater and Residual Certificates are exclusively tied to the creditworthiness of the Custodial Receipts deposited in the trusts and will reflect all changes to such ratings. The short-term rating assigned to the Floater Certificates will be adjusted upward or downward in conjunction with the short-term rating of the bank, and, in some cases, the long-term ratings of the Custodial Receipts deposited in the trusts.
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|Publication:||Daily the Pak Banker (Lahore, Pakistan)|
|Date:||Jan 17, 2019|
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