OREANDA-NEWS. Fitch Ratings has assigned an 'F1' rating to the \\$90,000,000 City of Garland, Texas Water and Sewer Commercial Paper Notes Series 2015 (notes).

KEY RATING DRIVERS

The rating is based on the support provided by a standby letter of credit (SLOC) issued by Sumitomo Mitsui Banking Corporation, acting through its New York Branch (Sumitomo Mitsui, rated 'A-/F1'; Stable Outlook) which has a stated expiration date of Sept. 30, 2020 unless extended or earlier terminated. The Sumitomo Mitsui SLOC provides coverage for the principal amount of the notes and interest due on the maturity dates of the notes. Water and sewer revenue bonds of the City of Garland, TX are rated 'AA'; Stable Outlook by Fitch. For further information see the press release dated July 20, 2015 entitled 'Fitch Downgrades Garland, Texas' Water and Sewer Revs to 'AA' Outlook to Stable' available on Fitch's website at www.fitchratings.com.

U.S. Bank, N.A., as the Issuing and Paying Agent (IPA) for the notes is directed to request an advance under the SLOC whenever proceeds of the sale of rollover notes are insufficient to pay maturing notes. The SLOC provides sufficient coverage for the principal amount of notes plus 270 days of interest calculated at 15% based upon a 365 day year.

All notes will be issued at par, with interest due at maturity. Following the occurrence of an event of default under the SLOC, Sumitomo Mitsui may direct the IPA to immediately stop the issuance of any additional notes. In such event, the SLOC will expire after all the notes supported by such SLOC mature and have been paid from funds drawn on the SLOC. In addition, the SLOC may be terminated by Sumitomo Mitsui, without payment obligations, upon the occurrence of specified immediate termination events related to the credit of the issuer. Morgan Stanley is the dealer for the notes.

RATING SENSITIVITIES

The 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 changes to the short-term rating of the bank and in some cases the long-term rating of the obligor issuing the CP notes.