Fitch Rates Utah Water Finance Agency Ser A-16 $34.6MM VRDBs 'AAA/F1+'
Source: Business Wire
The long-term 'AAA' rating on the bonds is based on the support of a financial guaranty insurance policy provided by Ambac Assurance Corporation, which insures scheduled payments of principal and interest on the bonds. The insurance policy will be in effect until the bonds mature on July 1, 2036. The short-term 'F1+' rating on the bonds is based on liquidity support for the series A bonds provided by JPMorgan Chase Bank, National Association, in the form of a standby bond purchase agreement (SBPA). The SBPA initially provide for the payment of principal and an amount of interest on the bonds equal to 35 days at the maximum interest rate of 12%, and will expire on the earlier of Aug. 15, 2009, or the occurrence of certain events of termination, all in accordance with its terms. The remarketing agent for the bonds is George K. Baum & Company. The bonds are expected to be available for delivery on or about Aug. 15, 2006.
The bonds will be issued in the weekly rate mode. While bonds bear interest in the weekly rate mode, interest will be payable on the first business day of each month, commencing Sept. 1, 2006. Bonds may be converted to a daily, commercial paper, or long-term rate mode and, upon such conversion, are subject to a purchase in lieu of redemption. While in the daily or weekly rate modes, bond owners have the option to demand purchase of their bonds on any business day, provided the remarketing agent is given the required advance notice. The bonds are also subject to purchase in lieu of redemption upon interest reset dates, and the expiration, termination or substitution of the SBPA. Optional and mandatory redemption provisions also apply to the bonds as specified in the Indenture.
The proceeds of the bonds will be used to funds various water projects.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 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.
Contact:
Fitch Ratings, New York
Mario Civico, 212-908-0796
Christopher Kimble, 212-908-0226 (Media Relations)
