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Fitch Rates New York City Transitional Finance Authority Bank Bonds 'AAA'; Outlook Stable

Wednesday, June 27, 2012 6:28 PM

Fitch Ratings has assigned an 'AAA' rating to the bank bonds corresponding to the following series of New York City Transitional Finance Authority (TFA) subordinated future tax secured bonds:

--$178,400,000 fiscal 2003 series 3, subseries 3F and 3H.

The Rating Outlook is Stable.

The rating is being assigned in conjunction with the June 13, 2012 amendment of a standby bond purchase agreement dated July 15, 2005 between TFA and Royal Bank of Canada. The agreement is scheduled to terminate on June 28, 2015 but is subject to extension at the bank's discretion upon TFA's request.

Based on a review of the terms governing bank bonds specified in the reimbursement agreement it is Fitch's opinion that the incremental risk associated with bank bonds does not have a material impact on TFA's long-term credit rating.

For more information, see Fitch's press release 'Fitch Rates New York City Transitional Finance Authority's $1B Bonds 'AAA'; Outlook Stable' dated May 31, 2012, available on Fitch's website at 'www.fitchratings.com'.

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 Tax-Supported Rating Criteria, this action was additionally informed by information from Creditscope.

Applicable Criteria and Related Research:

--'Tax-Supported Rating Criteria' (Aug. 15, 2011);

--'U.S. Local Government Tax-Supported Rating Criteria' (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. Local Government Tax-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648842

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.

(Source: Business Wire )
(Source: Quotemedia)

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