Fitch Rates Tender Option Bond Series 2016-XG0104 and 2016-XG0105 Trusts
--Floater Certificates Series 2016-XG0104 'AA-/F1'/Stable Outlook; Residual Certificates Series 2016-XG0104 'AA-'/Stable Outlook;
--Floater Receipts Series 2016-XG0105 'AA/F1+'/Stable Outlook; Residual Receipts Series 2016-XG0105 'AA'/Stable Outlook.
KEY RATING DRIVERS
The long-term 'AA-', Stable Outlook ratings assigned to the series 2016-XG0104 Floater and Residual Certificates are based on the rating that Fitch has assigned to the California Health Facilities Financing Authority, Refunding Revenue Bonds (Sutter Health), Series 2016B term bonds and serial bonds (rated 'AA-'/Stable Outlook) that have been deposited in the 2016-XG0104 trust.
The long-term 'AA', Stable Outlook ratings assigned to the series 2016-XG0105 Floater and Residual Receipts are based on the rating that Fitch has assigned to the City of New York, General Obligation Bonds, Fiscal 2017 Series A, Tax-Exempt Bonds, Subseries A-1, serial bonds (rated 'AA'/Stable Outlook) that have been deposited in the 2016-XG0105 trust.
The short-term 'F1' rating assigned to the series 2016-XG0104 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+' rating assigned to the series 2016-XG0105 Floater Receipts is based on the liquidity facility provided by State Street Bank and Trust Company (rated 'AA/F1+'/Stable Outlook), which has a stated expiration date of Aug. 15, 2017, unless such date is extended or earlier terminated.
RATING SENSITIVITIES
The short-term ratings assigned to the Floater Certificates and Floater Receipts will be adjusted upward or downward in conjunction with the short-term ratings 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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