OREANDA-NEWS. Fitch Ratings has assigned a rating of 'F1+' to the $100,000,000 City and County of Honolulu, Hawaii General Obligation Commercial Paper Notes, Issue A (notes).

KEY RATING DRIVERS:
The rating is based on the support provided by a liquidity facility in the form of a revolving credit agreement (RCA) issued by Royal Bank of Canada, acting through its New York Branch, rated 'AA/F1+', Stable Outlook, which has a stated expiration date of Dec. 21, 2018 unless extended or earlier terminated. The Royal Bank of Canada RCA provides coverage for the principal amount of notes and interest due on the maturity date of the notes. Fitch rates the general obligation bonds of Honolulu, Hawaii 'AA+, Stable Outlook. For more information about the issuer see the press release dated March 14, 2015, 'Fitch Rates Honolulu, HI's $878.8MM GOs 'AA+; Outlook Stable' available 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 RCA whenever proceeds of the sale of rollover notes and funds of the issuer are insufficient to pay maturing notes. The RCA provides sufficient coverage for the principal amount of notes plus 270 days of interest calculated at 12% 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 RCA, Royal Bank of Canada may direct the IPA to immediately stop the issuance of any additional notes. In such event, the RCA will expire after all the notes supported by the RCA have matured and have been paid from funds drawn on the RCA. In addition, the RCA may be terminated by Royal Bank of Canada upon the occurrence of specified immediate termination events. Merrill Lynch, Pierce, Fenner & Smith Incorporated 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.