Fitch Ratings affirms the 'AA+' rating assigned to the Commonwealth of Massachusetts' general obligation (GO) and Commonwealth guaranteed bonds. The Rating Outlook is Stable.
The affirmation includes the Commonwealth's $248,110,000 GO refunding bonds (variable rate demand bonds) 2001 series B, which are being converted to an index rate mode and purchased directly by RBC Capital Markets, LLC. The bonds will bear interest at a floating rate based on a fixed spread to the SIFMA index rate.
Fitch also withdraws its 'F1+' credit enhanced rating on the 2001 series B bonds, which was based on the credit support provided by Landesbank Hessen-Thueringen Girozentrale (Guaranteed Obligations) that is being terminated. The bonds are subject to mandatory tender today.
For more information on the Commonwealth's GO rating, please see Fitch's press release 'Fitch Rates Massachusetts' $463MM GO Bonds 'AA+'; Outlook Stable' dated Jan. 17, 2012.
Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
In addition to the sources of information identified in Fitch's report 'Tax-Supported Rating Criteria', this action was additionally informed by information from IHS Global Insight.
Applicable Criteria and Related Research:
--'Tax-Supported Rating Criteria', dated Aug. 15, 2011;
--'U.S. State Government Tax-Supported Rating Criteria', dated Aug. 15, 2011.
Applicable Criteria and Related Research:
Tax-Supported Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648898
U.S. State Government Tax-Supported Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648897
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