OREANDA-NEWS. Fitch Ratings assigns a short-term rating of 'F1' to the: \$450,000,000 Massachusetts School Building Authority tax exempt commercial paper subordinated dedicated sales tax bond anticipation notes, consisting of \$150,000,000 series A, \$150,000,000 series B, and \$150,000,000 series C (the notes).

KEY RATING DRIVERS:

The short-term 'F1' rating assigned to the series A notes is based on the support of an irrevocable direct-pay letter of credit (LOC) issued by Bank of America, N.A., (BANA, rated 'A/F1', Negative Outlook by Fitch). The short-term 'F1' rating assigned to the series B notes is based on the support of an LOC issued by Citibank, N.A. (Citi, rated 'A/F1', Stable Outlook) and the 'F1' rating assigned to the series C notes is based on the support of an LOC provided by Barclays Bank PLC (Barclays, rated 'A/F1', Stable Outlook). Each LOC provides coverage for the principal amount of the notes and interest due on the notes.

The short-term 'F1' rating assigned to the Series A notes will expire on the earlier of March 12, 2018, the stated expiration date of the BANA LOC, or upon any prior termination of the BANA LOC. The short-term 'F1' rating assigned to the series B notes will expire on the earlier of March 12, 2018, the stated expiration date of the Citi LOC, or upon any prior termination of the Citi LOC. The short-term 'F1' rating assigned to the series C notes will expire on the earlier of March 12, 2018, the stated expiration date of the Barclays LOC, or upon any prior termination of the Barclays LOC.

U.S. Bank, National Association, acting as Issuing and Paying Agent (I&PA) for the notes, is directed to request an advance under the respective LOC to pay principal and interest on maturing notes. Each LOC provides sufficient coverage for the principal amount of notes issued under the related series plus interest coverage equal to \$7,397,261.

All notes will be issued at par, with interest due at maturity. Following the occurrence of an event of default under a specified Letter of Credit and Reimbursement Agreement, the related bank may direct the IPA to immediately stop the issuance of any additional notes. The bank will also notify the IPA that the stated amount of the LOC shall be permanently reduced to the principal amount of notes then outstanding and interest thereon, and shall be further permanently reduced following the maturity of any such notes. The related bank may also issue a final drawing notice directing the IPA to draw on its LOC for the principal and interest amount due on all outstanding notes.

The dealer for the series A notes is Merrill Lynch, Pierce Fenner & Smith Incorporated, US Bancorp Investments, Inc. is the dealer for the series B notes and J.P. Morgan is the dealer for the series C notes. The notes are expected to available on or about March 12, 2015.

RATING SENSITIVITIES:

The rating for the notes is exclusively tied to the short-term rating that Fitch maintains on the bank providing the LOC and will reflect all changes to the rating.