Fitch Ratings has assigned a rating of 'AAApre', Negative Outlook to the $500,000,000 Texas Public Finance Authority Class 1 Revenue Notes (Texas Windstorm Insurance Association Program), Taxable Series 2012, defeased on Dec. 17, 2012.
Pursuant to an irrevocable deposit agreement, the Texas Treasury Safekeeping Trust Company holds a special account solely for the benefit of the defeased noteholders. All funds and securities held in this account are pledged irrevocably to the payment when due of interest on the defeased notes and principal upon the mandatory tender date of Feb. 1, 2013. The 'AAApre', Negative Outlook rating reflects this pledge and that all funds have been invested in direct non-callable obligations of the United States. The U.S. full faith and credit rating is currently rated 'AAA', Negative Outlook by Fitch. The deposit agreement does not provide for any substitute or additional investments.
Grant Thornton verified the mathematical accuracy of computations relating to the adequacy of income from deposited securities to pay debt service requirements of the defeased notes. These computations were contained in schedules provided to them by FirstSouthwest, financial advisor for the defeasance of the notes. According to the Grant Thornton verification report, the securities deposited will produce amounts necessary to provide for timely payment of the debt payment schedule on the defeased notes.
The 'AAApre' rating applies to the notes with the following CUSIP number:
882756 V89
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.
Applicable Criteria and Related Research:
--'U.S. Municipal Structured Finance Rating Criteria', Feb. 28, 2012,
--'Guidelines for Rating Pre-Refunded Municipal Bonds', December 4, 2012.
Applicable Criteria and Related Research:
U.S. Municipal Structured Finance Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=672570
Guidelines for Rating Prerefunded U.S. Municipal Bonds
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=695465
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