Fitch Ratings affirms rating of 'F1+' assigned to LIPA notes.
New York: Fitch Ratings, a nationally recognized statistical rating organization (NRSRO) designated by the U.S. Securities and Exchange Commission, affirmed the short-term rating of 'F1+' assigned to the Long Island Power Authority (LIPA) electric system general revenue notes, series 2015 GR-2, consisting of: GR-2A (federally taxable) and GR-2B (tax-exempt) notes.
A maximum of $100,000,000 aggregate principal amount of authorized notes may be outstanding at any given time. The rating action is in connection with the substitution of the current irrevocable direct-pay letter of credit (LOC) provided by Bank of Montreal (AA-/F1+/Stable) supporting the notes, with an LOC to be provided by State Street Bank and Trust Company (AA/F1+/Stable).
The State Street substitute LOC provides coverage for the principal amount of the notes and interest on the maturity or redemption dates of the notes. The 'F1+' on the series 2015 GR-2 notes is now based on the support provided by an LOC to be provided by State Street that has a stated expiration date of March 15, 2022, unless extended or earlier terminated.
The Bank of New York Mellon will continue as the Issuing and Paying Agent (IPA) for the notes, and as IPA, is directed to request an advance under the substitute LOC to pay principal and interest on maturing notes or on a Noticed Redemption Date. The substitute LOC provides sufficient coverage for the principal amount of notes and 275 days of interest calculated at 10% based upon a 360-day year.
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|Publication:||Daily the Pak Banker (Lahore, Pakistan)|
|Date:||Jun 7, 2018|
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