Fitch Affirms Wells Fargo Stage Trust Floater & Residuals Ser 2009-3C, 2011-63C & 2011-86C
OREANDA-NEWS. Fitch Ratings has affirmed the following ratings assigned to the floaters and residual certificates of the Wells Fargo Stage Trust series listed below:
--Series 2009-3C: floaters 'AA/F1+'; Stable Outlook; residuals 'AA'; Stable Outlook;
--Series 2011-63C: floaters 'AA/F1+'; Stable Outlook; residuals 'AA'; Stable Outlook;
--Series 2011-86C: floaters 'AA/F1+'; Stable Outlook; residuals 'AA'; Stable Outlook.
KEY RATING DRIVERS
The affirmation of the long and short-term ratings are in connection with amendments made to the trust agreements to restructure the trusts to not constitute a covered fund under Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Following the amendments, the floaters will bear interest over a period of time defined as a term period. Term periods are set by the applicable sponsor and will be between 90 and 366 days long and will utilize the index method or fixed method as the applicable reset rate method. The initial reset rate method for each of the floaters above will be the index method.
The Long-term 'AA'/Stable Outlook ratings assigned to the series 2009-3C floaters and residuals continues to be based on the higher of the rating that Fitch has assigned to the The New York City Transitional Finance Authority Building Aid Revenue Bonds, Fiscal 2009 Series S-4 (rated 'AA'/Stable Outlook) that have been deposited in the Trust and the rating that Fitch has assigned to the custodial level credit enhancement in the form of a swap agreement provided by Wells Fargo and Company (rated 'AA-/F1+'/Stable Outlook) securing the Custodial Receipts deposited in the Trust.
The Long-term 'AA'/Stable Outlook rating assigned to the series 2011-63C Floaters and Residual certificates continues to be based on the Florida Ports Financing Commission Refunding Revenue Bonds (State Transportation Trust Fund-Intermodal Program) Series 2011B (currently rated 'AA'/Stable Outlook) deposited in the trust.
The Long-term 'AA'/Stable Outlook ratings assigned to the series 2011-86C floaters and residuals continues to be based on the higher of the rating that Fitch has assigned to the Airport Commission of the City and County of San Francisco, San Francisco International Airport Second Series Revenue Refunding Bonds Series 2011C (rated 'A+'/Stable Outlook) that have been deposited in the Trust and the rating that Fitch has assigned to the custodial level credit enhancement in the form of a swap agreement provided by Wells Fargo Bank, N.A. (rated 'AA/F1+'/Stable Outlook) securing the Custodial Receipts deposited in the Trust.
The amendments to the trust agreements will also remove the floater holder's right to optionally tender their floaters for purchase. At the end of each term period, the floaters will be subject to mandatory tender and remarketing by the remarketing agent. The liquidity bank is obligated the make payment for the purchase price of tendered floaters that are not remarketed following a mandatory tender. As a result of these changes, the short-term rating assigned to the floaters will reflect the liquidity bank's obligation to fund the payment of purchase price for un-remarketed floaters following a mandatory tender only.
The 'F1+' rating assigned to the series 2009-3C Floater Certificates is based on the liquidity facility provided by Wells Fargo and Company, which has a stated expiration date of March 16, 2017 unless such date is extended or earlier terminated.
The 'F1+' rating assigned to the series 2011-63C and 2011-86C Floater Certificates is based on the liquidity facilities provided by Wells Fargo Bank, N.A., which have a stated expiration date of March 16, 2017 unless such date is extended or earlier terminated.
RATING SENSITIVITIES
The short-term ratings assigned to the floater certificates reflects the short-term ratings that Fitch maintains on the banks providing liquidity support and will be adjusted upward or downward in conjunction with the short-term rating of the banks, and, in some cases, the long-term ratings of the assets deposited in the trusts. The long-term ratings assigned to the series 2011-63C floater and residual certificates are exclusively tied to the long-term rating assigned to the creditworthiness of the underlying bonds deposited in the trust and will reflect all changes to that rating. The long-term ratings assigned to the series 2009-3C and 2011-86C floater and residual certificates are tied to the long-term ratings assigned to the creditworthiness of the underlying bonds deposited in the trusts and the long-term ratings that Fitch maintains on the banks providing credit enhancement. Changes to one or both of these ratings may affect the long-term ratings assigned to the series 2009-3C and 2011-86C floater and residual certificates.
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