Fitch Affirms Utility Debt Securitization Authority Restructuring Bonds Ser 2013T & 2013TE
KEY RATING DRIVERS
The transaction is performing within expectations, with levels of outstanding principal in-line with their targeted amortization schedules and no shortfalls in the capital subaccount. Additionally, the true-up mechanism continues to provide adequate credit support for all outstanding classes.
RATING SENSITIVITIES
As part of Fitch's initial rating sensitivity, Fitch conducted a break the bond case which provides an alternative means by which to measure the potential effects of rapid, significant declines in power consumption while capping the residential securitization charges at 20% of the total customer bill. This analysis determines the maximum level of forecasted energy decline that would cause a default in required payments on the securitization or cause the tariff charge to exceed 20% of the total residual customer bill. Despite this severe decline in consumption, due to the true-up mechanisms, the tariff charges are able to pay all debt service by the legal final maturity date.
For further detail on the rating sensitivity analysis for Utility Tariff Bonds, please refer to Fitch's criteria titled Rating Criteria for U.S. Utility Tariff Bonds available at 'www.fitchratings.com'.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Fitch's analysis of the Representations and Warranties (R&W) of Utility Debt Securitization Authority Restructuring Bonds Series 2013T and Series 2013TE can be found in 'Utility Debt Securitization Authority Restructuring Bonds Series 2013T and Series 2013TE - Appendix'. These R&W are compared to those of typical R&W for the asset class as detailed in the special report 'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions' dated June 12, 2015.
Fitch has affirmed the following ratings for Utility Debt Securitization Authority Restructuring Bonds Series 2013T and 2013TE:
Series 2013T
--T-1 bonds at 'AAAsf'; Outlook Stable;
--T-2 bonds at 'AAAsf'; Outlook Stable;
--T-3 bonds at 'AAAsf'; Outlook Stable;
--T-4 bonds at 'AAAsf'; Outlook Stable.
Series 2013TE
--TE-2 bonds at 'AAAsf'; Outlook Stable;
--TE-3 bonds at 'AAAsf'; Outlook Stable;
--TE-4 bonds at 'AAAsf'; Outlook Stable;
--TE-5 bonds at 'AAAsf'; Outlook Stable;
--TE-6 bonds at 'AAAsf'; Outlook Stable;
--TE-7 bonds at 'AAAsf'; Outlook Stable;
--TE-8 bonds at 'AAAsf'; Outlook Stable;
--TE-9 bonds at 'AAAsf'; Outlook Stable;
--TE-10 bonds at 'AAAsf'; Outlook Stable;
--TE-11 bonds at 'AAAsf'; Outlook Stable;
--TE-12 bonds at 'AAAsf'; Outlook Stable;
--TE-13 bonds at 'AAAsf'; Outlook Stable;
--TE-14 bonds at 'AAAsf'; Outlook Stable;
--TE-15 bonds at 'AAAsf'; Outlook Stable;
--TE-16 bonds at 'AAAsf'; Outlook Stable;
--TE-17 bonds at 'AAAsf'; Outlook Stable.
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