Fitch Ratings assigns a rating of 'A+/F1+ to the $49,830,000 Illinois Finance Authority Pollution Control revenue refunding bonds (Commonwealth Edison Company Project), series 2008E The rating is based on the support provided by an irrevocable, direct-pay letter of credit (LOC) issued by SunTrust Bank, securing the bonds. The long-term 'A+' rating assigned by Fitch to SunTrust Bank is on Rating Watch Negative as of March 7, 2008. The bank is obligated to make regularly scheduled payments of principal of and interest on the bonds when due, as well as purchase price for tendered bonds. The rating will expire upon the earliest of: June 27, 2009, the initial scheduled expiration date of the LOC, unless such date is extended; upon any prior termination of the LOC; and defeasance of the bonds. The LOC provides full coverage of principal plus an amount equal to 53 days' interest at a maximum rate of 12% based on a year of 365 days and purchase price for tendered bonds, while the bonds bear interest in the weekly or daily rate modes. The Underwriters and Remarketing Agents for the bonds are Banc of America Securities LLC and Loop Capital Markets, LLC. The bonds are expected to be delivered on or about June 27, 2008.
The bonds initially bear interest at a weekly interest rate, but may be converted to a daily, commercial paper, indexed mode, term or fixed interest rate mode. While bonds bear interest in the daily or weekly rate mode, interest payments are the first business day of each month, commencing July 1, 2008. During the daily and weekly mode, holders may tender their bonds on any business day, provided the trustee and remarketing agent are given requisite prior notice of the purchase. The bonds are subject to mandatory tender: (1) during the commercial paper or term rate modes, on the Purchase Dates, which will be the day after the end of each period; (2) upon conversion of the interest rate; (3) on the substitution date; (4) on the second business day prior to the expiration date of the LOC; and (5) no more than five business days following receipt by the trustee of a notice from the (Administrative Agent or banks) stating that an event of default under the Reimbursement Agreement has occurred and is continuing or that the banks will not reinstate the interest component of the LOC after an interest drawing, and in either case directing a mandatory tender of the bonds. Optional and mandatory redemption provisions also apply to the bonds in accordance with the terms of the documents.
Bond proceeds will be used to refund certain outstanding bonds of the borrower, Commonwealth Edison Company, an Illinois corporation.
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