OREANDA-NEWS. Fitch Ratings has revised the basis of the short-term 'F1+' rating assigned to the $80,880,000 Alaska Housing Finance Corporation home mortgage revenue bonds, series 2009B.

The rating action is in connection with: (i) the substitution of the liquidity support provided with internal resources of the Alaska Housing Finance Corporation (issuer) (rated 'AA+/F1+', Stable Outlook) with a Standby Bond Purchase Agreement (SBPA) issued by Wells Fargo Bank, NA (rated 'AA/F1+', Stable Outlook); and (ii) the mandatory tender of the bonds, which occurs on Jan. 12, 2016.

KEY RATING DRIVERS:
The short-term 'F1+' rating will be based on the liquidity support provided by Wells Fargo Bank, N.A. in the form of a SBPA. The long-term rating continues to be based on the general obligation bond rating assigned to the issuer. The Rating Outlook is Stable for the long-term rating. For more information on the long-term rating, see the press release dated Jan. 8, 2016 available on Fitch's website at www.fitchratings.com.

The substitute SBPA provides for the payment of the principal component of purchase price plus an amount equal to 185 days of interest calculated at a maximum rate of 12%, based on a year of 365 days for tendered bonds during the weekly rate mode in the event that the proceeds of a remarketing of the bonds are insufficient to pay the purchase price following an optional or mandatory tender. The substitute SBPA will expire on Jan. 11, 2019, the stated expiration date, unless such date is extended, conversion to any interest rate mode other than weekly or upon the occurrence of certain other events of default which result in a mandatory tender or other termination events related to the credit of the bond obligor which result in an automatic and immediate termination. The remarketing agent for the bonds is Wells Fargo Securities.

RATING SENSITIVITIES:
The short-term 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 the short-term rating of the bank and, in some cases, the long-term rating of the bond obligor. The long-term rating is exclusively tied to the creditworthiness of the bond obligor and will reflect all changes to that rating.