Fitch Rates CA State Public Works Board's $641.7MM Prerefunded Bonds 'AAApre'; Outlook Stable
OREANDA-NEWS. Fitch Ratings assigns a rating of 'AAApre' to the following State Public Works Board of the State of California (Trustees of the California State University) lease revenue bonds:
--$37,635,000 2006 series G (Physical Science Replacement Building, Wing A, Los Angeles Campus) (2006G bonds);
--$45,135,000 2009 series D (Monterey Bay Campus Library) (2009D bonds);
--$139,750,000 2009 series J (J. Paul Leonard & Sutro Library) (2009J bonds);
--$96,085,000 2011 series B (various California State University Projects) (2011B bonds);
--$110,555,000 2012 series D (various California State University Projects) (2012D bonds);
--$49,265,000 2012 series E (California State University: various Buildings) (2012E bonds);
--$163,310,000 2013 series H (various California State University Projects) (2013 H bonds).
These bonds were refunded on April 20, 2016, with proceeds of the Trustees of the California State University systemwide revenue bonds, series 2016A, B-1, B-2 and B-3 and funds previously securing the refunded bonds. The Rating Outlook is Stable.
KEY RATING DRIVERS:
The 'AAApre'/Outlook Stable rating is based on the pledge of securities in the separate irrevocable escrow funds securing each series of refunded bonds and reflects the lien of the refunded bondholders on a respective escrow trust fund and that all amounts have been invested in direct non-callable obligations of the United States. The U. S. full faith and credit is currently rated 'AAA'/Outlook Stable by Fitch.
The ratings apply to the refunded bonds referenced above and by CUSIP numbers, below.
Pursuant to seven separate irrevocable escrow agreements, the State Treasurer, acting as escrow agent, holds seven separate special irrevocable escrow funds, for the benefit of the respective series of refunded bondholders. All cash and securities held in each respective fund are pledged irrevocably to the payment when due of principal upon maturity or earlier redemption and interest, on the related refunded bonds. In the future, any substitute or additional investments must be limited to direct non-callable U. S. government obligations. The refunded bonds will be escrowed to maturity or redeemed at par plus accrued interest as follows: 2006G bonds on Nov. 1, 2016; 2009D bonds on April 1, 2019; 2009J bonds on Nov. 1, 2019; 2011B on Oct. 1, 2021; 2012D and 2012E bonds on Sept. 1, 2022; and 2013H bonds on Sept. 1, 2023.
Causey Demgen & Moore P. C. verified the mathematical accuracy of computations relating to the adequacy of income from escrowed funds to pay debt service requirements of the refunded bonds. These computations were contained in schedules provided to them by Barclays Capital Inc., underwriter for the refunding bonds. According to the verification report, the securities and cash deposited will produce amounts necessary for timely payment of the principal and interest on the refunded bonds. Prior to accepting substitute investments or disbursing funds, the escrow agent must receive a new report verifying the continued sufficiency of escrowed funds to meet all future payments of principal and interest on the refunded bonds when due.
RATING SENSITIVITIES
The rating is exclusively tied to the U. S. sovereign creditworthiness and will reflect all changes to that rating.
The 'AAApre'/Outlook Stable rating applies to the bonds with the following CUSIP numbers:
1306845V1
1306845W9
1306845X7
1306845Y5
1306845Z2
1306846A6
1306846B4
1306846C2
1306846D0
1306846E8
1306846J7
1306846F5
1306846G3
1306846H1
130685TP5
130685TQ3
130685TR1
130685TS9
130685TT7
130685TU4
130685TV2
130685TW0
130685TX8
130685TY6
130685TZ3
130685UA6
130685UB4
130685UC2
130685YT1
130685YU8
130685YV6
130685YW4
130685YX2
130685YY0
130685YZ7
130685ZA1
130685ZB9
130685ZE3
130685ZF0
130685ZC7
130685ZD5
130685K41
130685K58
130685K66
130685M56
130685K74
130685K82
130685K90
130685L24
130685L32
130685L57
130685L65
130685L73
130685M49
130685L81
130685L99
130685M23
130685M31
130685L40
1306854W7
1306854X5
1306854Y3
1306854Z0
1306855A4
1306855B2
1306855C0
1306855D8
1306855E6
1306855F3
1306855G1
1306855H9
1306855J5
1306855K2
1306855L0
1306855M8
1306855N6
1306855P1
1306855Q9
1306855R7
1306855S5
1306855T3
1306855X4
1306855Y2
1306855Z9
1306856A3
1306856B1
1306856C9
1306856D7
1306856E5
1306856F2
1306856G0
1306856H8
1306856J4
1306856K1
1306856L9
1306856M7
1306856N5
1306856P0
1306856T2
1306856Q8
1306856R6
1306856S4
13068LJK2
13068LJL0
13068LJM8
13068LJN6
13068LJP1
13068LJQ9
13068LJR7
13068LJS5
13068LJT3
13068LJU0
13068LJV8
13068LJW6
13068LJX4
13068LKF1
13068LJY2
13068LJZ9
13068LKG9
13068LKA2
13068LKB0
13068LKC8
13068LKE4
13068LKD6
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