Fitch Rates Texas Water Development Board's $309MM 2007A Bonds'AAA/F1+'
Source: Business Wire
The short-term 'F1+' rating on the bonds is based on the standby bond purchase agreement (SBPA) provided by JPMorgan Chase Bank, National Association (the bank). The SBPA provides for the payment of the principal component of purchase price and 34 days of interest calculated at a maximum rate of 10% per annum based on a 365-day year. The SBPA will expire on the earlier of April 29, 2008, unless such date is extended, or any prior termination of the SBPA. The short-term rating on the bonds will expire upon the expiration or termination of the SBPA. The Bank of New York Trust Company, N.A., as agent, is required to give notice to the bank in the event that remarketing proceeds are insufficient to pay purchase price for tendered bonds.
The bonds initially bear interest in a daily rate mode, but may be converted to a weekly, commercial paper, term or auction interest rate mode. While the bonds bear interest in the daily and weekly rate modes, interest is payable on the first business day of each month, commencing on June 1, 2007. Holders have the option to tender their bonds for purchase with prior notice while the bonds bear interest in a daily or weekly rate mode. The bonds are subject to mandatory tender on each commercial paper interest payment date; on interest mode conversion dates (other than conversions from the daily mode to weekly mode or weekly to the daily mode); upon the substitution of the SBPA (unless the agent has received notice that such substitution will not cause a withdrawal or reduction of the short-term rating assigned to the bonds); and the expiration or termination of the SBPA. The bonds are also subject to mandatory and optional redemption.
Bond proceeds will be used to refund a portion of the board's outstanding obligations.
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
Mary Jane Ziga, 212-908-0529, New York
(Short-term Rating)
Adrienne Booker, 312-368-5471, Chicago
(Texas Water Development Board)
or
Media Relations:
Cindy Stoller, 212-908-0526, New York
