OREANDA-NEWS. Fitch Ratings has affirmed the ratings on two American Electric Power Texas U.S. Utility Tariff Bond Transactions as follows:

AEP Texas Central Transition Funding II, LLC
--Class A-4 at 'AAAsf'; Outlook Stable;
--Class A-5 at 'AAAsf'; Outlook Stable.

AEP Texas Central Transition Funding III, LLC
--Class A-1 at 'AAAsf'; Outlook Stable;
--Class A-2 at 'AAAsf'; Outlook Stable;
--Class A-3 at 'AAAsf'; Outlook Stable.

KEY RATING DRIVERS
The transactions are performing within expectations, with levels of outstanding principal amounts in-line with the targeted amortization schedules. The true-up mechanism in the transaction is performing as expected, providing 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 securitizations or cause the tariff charges 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.

DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.

Fitch's analysis of the Representation and Warranties (R&W) of AEP Texas Central Transition Funding III, LLC can be found in 'AEP Texas Central Transition Funding, LLC -- 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 the Global Structured Finance Transactions' dated June 12, 2015.