Fitch Rates New York City's (NY) $246.4MM GO Bank Bonds 'AA'; Outlook Stable
--\$101 million fiscal 2008 series J, subseries J-5
--\$145.4 million fiscal 2008 series L, subseries L-5.
The Rating Outlook is Stable.
The rating action is in connection with the substitution of the liquidity support provided for both subseries by Dexia Credit Local (rated 'A/F1'; Negative Outlook by Fitch) in the form of Standby Bond Purchase Agreement (SBPA), with a substitute SBPA to be issued by Bank of America, N.A. (rated 'A/F1'; Negative Outlook) for each subseries of bonds. The substitution for the series 2008 J-5 bonds occurred on March 31, 2015. The substitution for the series 2008 L-5 bonds will occur on April 22, 2015.
Based on a review of the terms governing bank bonds specified in the standby agreements, it is Fitch's opinion that the incremental risk associated with bank bonds does not have a material impact on the city's long-term credit rating. For more information on the long-term rating, see 'Fitch Rates New York City's (NY) \$900MM GOs 'AA'; Outlook Stable' dated March 9, 2015.
For more information on the adjustable rate bonds, see 'Fitch to Confirm S-T Rating on \$101MM NYC Adj Rate GOs Fiscal 2008 Series J-5 Bonds,' dated March 16 2015; 'Fitch Confirms S-T Rating on \$101 MM NYC Adj Rate GOs Fiscal 2008 Series J-5 Bonds,' dated March 31; and 'Fitch to Confirm S-T Rating on \$145MM NYC Adjustable Rate GOs Fiscal 2008 Ser L-5 Bonds,' dated, April 8.
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