Fitch Rates J. P. Morgan PUTTERs/DRIVERs, Series 5010 Trust
--PUTTERs, Series 5010 'AA-/F1+', Stable Outlook; DRIVERs, Series 5010 'AA-', Stable Outlook; Custodial Receipts, Series 5010 'AA-', Stable Outlook.
KEY RATING DRIVERS
The 'AA-' ratings assigned to the PUTTERs, DRIVERs and Custodial Receipts are based on the higher of the ratings that Fitch has assigned to the Michigan Finance Authority Hospital Revenue Bonds (McLaren Health Care) Series 2016 (rated 'AA-', Stable Outlook) deposited with the custodian and the irrevocable direct-pay letter of credit (LOC) issued by JPMorgan Chase Bank, N. A. (rated 'AA-/F1+', Outlook Stable), which secures the Custodial Receipts deposited in the series 5010 trust. The stated expiration date of the LOC supporting the Custodial Receipts is July 27, 2017, unless such date is extended or earlier terminated. The stated expiration date of the tender option provided by JPM as tender option provider for the PUTTERs is July 27, 2017, unless such date is extended or earlier terminated.
The LOC supports the payment of principal and interest on the custodial receipts deposited in the trust in addition to payments due upon a mandatory tender event under the custody agreement. In the event that JPM has not honored the draw on the LOC in full accordance with its terms, the principal and interest amount payable on the underlying bonds held by the custodian amount shall be paid to the holder of the custodial receipts.
The liquidity facility provides for the payment of the principal component of purchase price plus an amount equal to 185 days of interest calculated at a maximum rate of 4.095%, based on a year of 360 days for tendered bonds in the event that the proceeds of a remarketing of the bonds are insufficient to pay the purchase price following an optional or mandatory tender under the standard terms and provisions of trust agreement. The trustee is obligated to make timely draws on the liquidity facilities to pay purchase price in the event of insufficient remarketing proceeds, and in connection with the expiration or termination of the tender option, except in the case of the tender option termination events permitting immediate termination of the tender option.
RATING SENSITIVITIES
The long-term ratings assigned to the PUTTERs, DRIVERs and Custodial Receipts are based on the higher of the rating assigned to the creditworthiness of the underlying bonds and the long-term rating that Fitch maintains on the bank providing credit enhancement. Changes to one or both of these ratings may affect the long-term rating assigned to the PUTTERs, DRIVERs and Custodial Receipts. The short-term rating assigned the PUTTERs will be adjusted upward or downward in conjunction with the short-term rating of the bank, and, in some cases, the long-term rating of the underlying assets deposited in the trust.
Комментарии