OREANDA-NEWS. Fitch Ratings assigns a rating of 'F1+' to the Massachusetts Water Resources Authority's $150,000,000 tax exempt commercial paper notes series 2016 (the notes).

KEY RATING DRIVERS:

The 'F1+' rating is based on the support provided by an irrevocable direct pay letter of credit (LOC) issued by TD Bank, N.A., (TD, rated 'AA-/F1+', Stable Outlook), which has a stated expiration date of April 12, 2019 unless extended or earlier terminated. The TD LOC provides coverage for the principal amount of the notes and interest due on the maturity dates of the notes.

U.S. Bank, National Association is the Issuing and Paying Agent (IPA) for the notes, and as IPA, is directed to request an advance under the LOC to pay principal and interest on maturing notes. The LOC provides sufficient coverage for the principal amount of notes and 270 days of interest calculated at 10% based on a 365 day year.

All notes will be issued at par, with interest due at maturity. Following the occurrence of an event of default under the LOC, TD may direct the IPA to immediately stop the issuance of any additional notes. In such an event the LOC will expire after all the notes supported by the LOC mature and have been paid from funds drawn on the LOC. Goldman Sachs & Co. and Morgan Stanley & Co., are the dealers for the notes.

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