OREANDA-NEWS. Fitch Ratings has affirmed the following class of notes issued by Grain Spectrum Funding II, LLC:

--$194,325,000 series 2014-1 wireless spectrum-backed notes at 'A-sf'.

The Rating Outlook is Stable.

KEY RATING DRIVERS
The rating primarily relies on the Issuer Default Ratings (IDR) of Cellco Partnership (Verizon). As a result, there is one risk-presenting entity in this transaction for purposes of applying the Fitch CLN criteria 'Global Rating Criteria for Single- and Multi-Name Credit-Linked Notes'. Verizon has an IDR of 'A-' with a Stable Outlook. The transaction relies to a lesser extent on U.S. Bank N.A. as trustee (rated 'AA'/Outlook Stable/'F1+').

RATING SENSITIVITIES
Changes in the IDR of Verizon will result in a change in the rating of the series 2014-1 note according to Fitch's CLN Criteria.

Proceeds from Grain's series 2014-1 note issuance were used by the issuer to finance the purchase of wireless spectrum licenses from the issuer's subsidiary and to pay expenses, with the remaining proceeds returned to the issuer as a dividend. Through a lease transfer and license purchase agreement (the agreement), the issuer is leasing AWS and PCS spectrum to Verizon. Payments received under the agreement support payments made on the series 2014-1 notes. Based on its commitment under a 10-year extendable 'hell-or-high-water' lease transfer agreement with the issuer, Verizon Wireless, as the lessee, is obligated to make and guarantee lease payments.