OREANDA-NEWS. Fitch Ratings assigns ratings of 'AA/F1', Stable Outlook to the City of New York (City) general obligation bonds, fiscal 2015 series F, adjustable rate bonds, \$100,000,000 subseries F-5, and 'AA/F1+', Stable Outlook to \$100,000,000 subseries F-6.

KEY RATING DRIVERS:
The 'AA' long-term rating and Stable Outlook is based on the credit quality of the City of New York. The 'F1' short-term rating is based on the liquidity support in the form of a standby bond purchase agreement (SBPA) provided by Barclays Bank PLC, (rated 'A/F1', Stable Outlook). The 'F1+' short-term rating is based on the liquidity support in the form of a SBPA provided by JPMorgan Chase Bank, National Association, (rated 'AA-/F1+', Stable Outlook).

The SBPAs are sized to cover the payment of the principal component of purchase price plus an amount equal to 35 days of interest calculated at a maximum rate of 9% based on a 365-day year which is sufficient for tendered bonds in the daily, weekly and two-day rate modes in the event that the proceeds of a remarketing of the bonds are insufficient to pay the purchase price following a mandatory or optional tender. Each SBPA will expire upon the earliest of: June 18, 2019 (for F-5) and June 18, 2018 (for F-6), the stated expiration dates of the SBPAs, unless such dates are extended; conversion of all the bonds to an interest rate mode other than the daily, weekly or the two-day rate mode; substitution of the SBPA; or upon the occurrence of certain other events of default which result in a mandatory tender or other termination events related to the credit of New York City which result in an automatic and immediate termination. The short-term rating for each subseries will expire on the expiration or prior termination of the SBPA. The remarketing agent for the subseries F-5 bonds is Barclays Capital, Inc. The remarketing agent for the subseries F-6 bonds is J.P. Morgan Securities LLC. The bonds are expected to be delivered on or about June 18, 2015.

The bonds will be issued in the daily rate mode, but may be converted to a weekly, two-day, commercial paper, indexed, term, stepped coupon, auction or fixed rate. While bonds bear interest in the daily rate mode, interest is paid on the first business day of each month, commencing July 1, 2015. Holders of bonds bearing interest in the daily, two-day and weekly rate modes may tender their bonds for purchase with the requisite prior notice. The tender agent is obligated to make timely draws on the SBPA to pay purchase price in the event of insufficient remarketing proceeds, and in connection with the expiration or termination of the SBPA, except in the case of the credit-related events permitting immediate termination or suspension of the SBPA.

Funds drawn under the SBPA are held uninvested and are free from any lien prior to that of the bondholders. The bonds are subject to mandatory tender: (1) upon conversion of the interest rate; (2) upon expiration, substitution (unless rating confirmation has been obtained) or termination of the SBPA; and (3) following the receipt of written notice from the bank of an event of default under the SBPA, directing such mandatory tender. Optional and mandatory redemption provisions also apply to the bonds.

Bond proceeds will be used to finance capital projects for the City. For more information on the long-term rating, see Fitch's press release dated May 28, 2015, available on Fitch's web site at 'www.fitchratings.com'.

RATING SENSITIVITIES
The short-term rating reflects the short-term rating that Fitch maintains on the bank providing liquidity support and will be adjusted upward or downward in conjunction with the short-term rating of the bank and, in some cases, the long-term rating of the bonds. The long-term rating is exclusively tied to the creditworthiness of the bonds and will reflect all changes to that rating.