OREANDA-NEWS. S&P Global Ratings today assigned its preliminary ratings to Utility Debt Securitization Authority's $475.260 million restructuring bonds series 2016B (see list).

The bond issuance is backed by restructuring property.

The preliminary ratings are based on information as of July 29, 2016. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings.

Our preliminary ratings on the restructuring bonds reflect our view of each class' ability to withstand our cash flow stress scenarios and the transaction's reserve subaccount, which functions as a reserve account to cover potential shortfalls. The transaction also benefits from additional credit strength because of the length of time between each tranche's expected and legal final maturity dates, which we accounted for in our analysis.