Fitch to Affirm S-T 'F1+' Rating on Lower CO River Auth (TX) CP Notes Series B

OREANDA-NEWS. On the effective date of Sept. 4, 2015, Fitch Ratings will affirm the short-term rating of 'F1+' assigned to the Lower Colorado River Authority (LCRA) commercial paper notes, taxable series B (notes).

The rating action is in connection with the (i) extension of the expiration date of the current irrevocable direct-pay letter of credit (LOC) provided by State Street Bank and Trust Company (State Street, rated 'AA/F1+', Stable Outlook) supporting the notes to Sept. 10, 2018; (ii) increase of the stated amount of the LOC from $100,000,000 to $150,000,000; and (iii) reoffering of the notes on Sept. 4, 2015. The extended expiration date of the LOC is Sept. 10, 2018.

KEY RATING DRIVERS:

The 'F1+' rating on the series B notes will be affirmed based on the continued support provided by the State Street LOC, which, when amended, will provide coverage for $137,614,678 in principal amount of the notes plus 270 days of interest calculated at 12%, the maximum rate on the notes. Merrill Lynch, Pierce, Fenner & Smith Incorporated will continue to serve as dealer for the notes.

RATING SENSITIVITIES

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