Fitch Ratings has taken various rating actions on enhanced variable-rate municipal bonds supported by letters of credit and liquidity facilities provided by various banks. In addition, Fitch has taken various rating actions on municipal bonds supported by guarantee programs.
The long-term rating on certain municipal bonds may be higher than the long-term rating of the enhancement provider due to consideration given to Fitch's dual-party pay criteria outlined in 'Dual-Party Pay Criteria For Long-Term Ratings on LOC-Supported U.S. Public Finance Bonds,' dated March 10, 2011.
The short-term rating on certain municipal bonds may be lower than the short-term rating of the enhancement provider. As discussed in 'Rating Guidelines for Variable-Rate Demand Obligations Issued with External Liquidity Support', dated Feb. 28, 2011, a short-term rating based on a bank liquidity facility may never be higher than the short-term rating related to the long-term bond rating of the debt issuer, since the liquidity provider's obligation to fund purchase price for tendered bonds is conditioned on the issuer's ability to meet its debt obligations.
A spreadsheet detailing the rating actions in question is available on the Fitch Ratings website at 'www.fitchratings.com' under the following headers:
Public Finance then U.S. Public Finance then Special Reports
Additional information is available at www.fitchratings.com.
Applicable Criteria and Related Research:
--'U.S. Municipal Structured Finance Rating Criteria', dated April 25, 2011;
--'Rating Guidelines for Letter of Credit-Supported Bonds', dated July 26, 2011;
--'Rating Guidelines for Variable-Rate Demand Obligations Issued with External Liquidity Support', dated Feb. 28, 2011;
--'Dual-Party Pay Criteria For Long-Term Ratings on LOC-Supported U.S. Public Finance Bonds', dated March 10, 2011.
--'Rating Guidelines for Commercial Paper Note Programs Issued with External Support', dated April 11, 2011.
--'U.S. State Government Tax-Supported Rating Criteria' (Oct. 8, 2010).
--'Tax-Supported Rating Criteria' (Aug. 16, 2010).
--'Rating Guidelines for State Credit Enhancement Programs' (July 29, 2011).
Applicable Criteria and Related Research: Fitch Takes Various Rating Actions on Enhanced Municipal Bonds
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=649398
Rating Guidelines for State Credit Enhancement Programs
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647629
Tax-Supported Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=548605
U.S. State Government Tax-Supported Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=564546
Rating Guidelines for Commercial Paper Note Programs Issued with External Support
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=619027
Dual-Party Pay Criteria for Long-Term Ratings on LOC-Supported U.S. Public Finance Bonds
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=611525
Rating Guidelines for Variable-Rate Demand Obligations Issued with External Liquidity Support
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=607665
Rating Guidelines for Letter of Credit-Supported Bonds
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647311
U.S. Municipal Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=624129
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '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 ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.
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Fitch Ratings
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Richard Park, +1-212-908-0289
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or
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or
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Email: cindy.stoller@fitchratings.com