OREANDA-NEWS. On the effective date of Feb. 3, 2016, Fitch Ratings will affirm the 'A/F1'/ Stable Outlook rating assigned to the California Pollution Control Financing Authority Variable Rate Demand Solid Waste Disposal Revenue Bonds (Solid Waste of Willits, Inc. Project) Series 2008A (bonds). The rating action is in connection with the (i) substitution of the current irrevocable direct-pay letter of credit (LOC) provided by MUFG Union Bank, National Association (rated, 'A+/F1'/ Stable Outlook) with a substitute LOC to be issued by Comerica Bank (rated, 'A/F1'/Stable Outlook), and (ii) the mandatory tender of the bonds, which will occur on Feb. 3, 2016.

KEY RATING DRIVERS

On the effective date, the rating will be based on the support provided by the substitute LOC issued by Comerica Bank, which has an initial stated expiration date of Sept. 30, 2018, unless such date is extended or earlier terminated. The substitute LOC supports the bonds in the weekly interest rate mode only.

Pursuant to the substitute LOC, the bank is obligated to make regularly scheduled payments of principal of and interest on the bonds in addition to payments due upon maturity, acceleration and redemption, as well as purchase price for tendered bonds. The Comerica Bank LOC provides full and sufficient coverage of principal plus an amount equal to 45 days of interest at a maximum rate of 12% based on a year of 365 days and purchase price for tendered bonds, while in the weekly rate mode. The Remarketing Agent for the bonds is Westhoff, Cone & Holmstedt.

RATING SENSITIVITIES

The rating is exclusively tied to the short and long-term rating that Fitch maintains on the bank providing the substitute LOC and will reflect all changes to that rating.