OREANDA-NEWS. Fitch Ratings has downgraded the long-term rating to 'A+' from 'AA' and the short-term rating to 'F1' from 'F1+' assigned to the $83,015,000 Illinois Finance Authority adjustable rate demand revenue bonds, series 2008. The Rating Outlook for the long-term rating is Stable. The rating action is in connection with(i) the substitution of the irrevocable direct-pay letter of credit (LOC) previously provided by U.S. Bank, National Association (rated 'AA/F1+', Stable Outlook) with a LOC issued by PNC Bank, National Association (PNC; rated 'A+/F1',Stable Outlook) and (ii)the mandatory tender of the bonds on March 31, 2016.

KEY RATING DRIVERS
The 'A+/F1' rating is based on the support provided by the substitute LOC issued by PNC, which has an initial stated expiration date of March 30, 2018, unless such date is extended or earlier terminated, while the bonds are in the daily and weekly interest rate modes 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 PNC LOC provides full and sufficient coverage of principal plus an amount equal to 57 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 and daily rate modes. The Remarketing Agent for the bonds is PNC Capital Markets LLC.

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.