Fitch Rates Tender Option Bond Series 2016-ZM0395, 2016-XM0377, 2016-XM0390 and 2016-ZM0397 Trusts
--Floater Certificates Series 2016-ZM0395 'AAA/F1', Stable Outlook; Residual Certificates Series 2016-ZM0395 'AAA', Stable Outlook;
--Floater Receipts, Series 2016-XM0377 'AA+/F1+', Stable Outlook; Residual Receipts, Series 2016-XM0377 'AA+', Stable Outlook;
--Floater Receipts, Series 2016-XM0390 'AA/F1+', Stable Outlook; Residual Receipts, Series 2016-XM0390 'AA', Stable Outlook;
--Floater Receipts, Series 2016-ZM0397 'AA/F1+', Stable Outlook; Residual Receipts, Series 2016-ZM0397 'AA', Stable Outlook.
KEY RATING DRIVERS
The long-term 'AAA', Stable Outlook ratings assigned to the series 2016-ZM0395 Floater and Residual Certificates are based on the rating that Fitch has assigned to the San Diego County Regional Transportation Commission Sales Tax Revenue Bonds (Limited Tax Bonds), 2016 Series A (rated 'AAA', Stable Outlook) that have been deposited in the 2016-ZM0395 trust.
The long-term 'AA+', Stable Outlook ratings assigned to the series 2016-XM0377 Floater and Residual Receipts are based on the rating that Fitch has assigned to City of San Antonio, Texas Electric Gas and Systems Junior Lien Revenue Bonds, Series 2013 (rated 'AA+', Stable Outlook) that have been deposited in the series 2016-XM0377 trust.
The long-term 'AA', Stable Outlook ratings assigned to the series 2016-XM0390 Floater and Residual Receipts are based on the rating that Fitch has assigned to The Regents of the University of California General Revenue Bonds, 2013 Series AF (rated 'AA', Stable Outlook) that have been deposited in the series 2016-XM0390 trust.
The long-term 'AA', Stable Outlook ratings assigned to the series 2016-ZM0397 Floater and Residual Receipts are based on the rating that Fitch has assigned to California Health Facilities Financing Authority Revenue Bonds (Lucile Salter Packard Children's Hospital at Stanford (LPCH)) 2016 series B (rated 'AA', Stable Outlook) that have been deposited in the series 2016-ZM0397 trust.
The short-term 'F1' rating assigned to the series 2016-ZM0395 Floater Certificates is based on the liquidity facility provided by Morgan Stanley Bank, N. A. (rated 'A+/F1', Stable Outlook), which has a stated expiration date of Aug. 15, 2017, unless such date is extended or earlier terminated.
The short-term 'F1+' ratings assigned to the series 2016-XM0377 and 2016-XM0390 Floater Receipts are based on the liquidity facilities provided by JPMorgan Chase Bank, N. A. (rated 'AA-/F1+', Stable Outlook), which have a stated expiration date of Aug. 17, 2017, unless such date is extended or earlier terminated.
The short-term 'F1+' rating assigned to the series 2016-ZM0397 Floater Receipts is based on the liquidity facility provided by Royal Bank of Canada (rated 'AA/F1+', Negative Outlook), which has a stated expiration date of Aug. 17, 2017, unless such date is extended or earlier terminated.
RATING SENSITIVITIES
The short-term ratings assigned to the Floater Certificates and Receipts will be adjusted upward or downward in conjunction with the short-term rating of the banks, and, in some cases, the long-term ratings of the underlying bonds deposited in the trusts. The long-term ratings assigned to the Floater and Residual Certificates and Floater and Residual Receipts are exclusively tied to the creditworthiness of the underlying bonds deposited in the trusts and will reflect all changes to such ratings.
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