OREANDA-NEWS. On the effective date of March 10, 2016, Fitch Ratings will assign a 'AAApre' rating to the $76,955,000 North Carolina Municipal Power Agency Number 1 Catawba electric revenue bonds, refunding series 2009A, maturing Jan. 1, 2022-2030 (partial refundings of all maturities). The Rating Outlook is Stable. The refunded bonds will be redeemed on Jan. 1, 2019 at par plus accrued interest.

KEY RATING DRIVERS

The 'AAApre', Stable Outlook rating is based on the pledge of securities in the irrevocable trust fund securing the bonds and reflects the express lien of the refunded bondholders on the funds and securities deposited irrevocably and that all amounts have been invested in direct non-callable obligations of the United States and direct non-callable senior unsubordinated obligations of the Federal Home Loan Bank and the Federal Farm Credit Bank. The U.S. full faith and credit is currently rated 'AAA', Stable Outlook by Fitch. As a government supported enterprise (GSE), the Federal Farm Credit Bank is also rated 'AAA', Stable Outlook by Fitch.

The bonds will be refunded on March 10, 2016 with the proceeds of the issuer's $69,380,000 Catawba electric revenue bonds, refunding series 2016A (sold at a premium) as well as amounts released from the bond funds and reserve funds previously securing the refunded bonds. The ratings apply to the bonds listed by CUSIP number below.

Pursuant to an irrevocable refunding trust agreement, U.S. Bank National Association, as trustee, will hold a separate special irrevocable trust fund, in trust for the benefit of the refunded bondholders. All cash and securities held in this fund will be pledged irrevocably to the payment of principal and interest on the refunded bonds when due. In the future, Fitch will review any proposed substitution or reinvestment of funds, which may only occur following receipt of confirmation that the action will not result in a reduction or withdrawal of the ratings on the refunded bonds.

Causey Demgen & Moore PC verified the mathematical accuracy of computations relating to the adequacy of cash and securities deposited in the refunding trust fund to pay debt service requirements of the refunded bonds. In the opinion of Causey Demgen & Moore PC, cash and securities deposited in the refunding trust fund will produce amounts necessary to provide for timely payment of the refunded bonds. Prior to accepting substitute investment securities or disbursing excess funds to the issuer, the trustee must receive a new report verifying the continued sufficiency of escrowed funds to meet all future payments of principal and interest on the refunded bonds.

RATING SENSITIVITIES
The rating is currently tied to the U.S. sovereign creditworthiness and will reflect all changes to that rating.

The 'AAApre' rating applies to the bonds with the following CUSIP numbers:

--6582034P6
--6582034Q4
--6582034R2
--6582034S0
--6582034T8
--6582034U5
--6582034V3.