OREANDA-NEWS. Fitch Ratings assigns a rating of 'AA-/F1+' to the California Pollution Control Financing Authority's $2,500,000 variable rate demand solid waste disposal revenue bonds (Vanderham Family Trust - J & D Wilson & Sons Dairy Project), series 2004. The Rating Outlook for the long-term rating is Stable.

KEY RATING DRIVERS:
The rating is based on the support provided by an irrevocable direct-pay letter of credit (LOC) issued by CoBank, ACB (rated, 'AA-/F1+', Stable Outlook), which has an initial stated expiration date of June 14,2017, unless such date is automatically extended for one year periods or earlier terminated, while the bonds are in the weekly interest rate mode only.

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 LOC provides full and sufficient coverage of principal plus an amount equal to 109 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 rate mode. The Remarketing Agent for the bonds is The Frazer Lanier Company, Incorporated. The bonds are expected to be remarketed on April 7, 2016.

The bonds will bear interest at a weekly rate, but may be converted to a term rate. While bonds bear interest in the weekly rate mode, interest payments are on the first business Thursday of each March, June, September and December. The next scheduled interest payment date is June 2, 2016. The trustee is obligated to make timely draws on the LOC to pay principal, interest, and purchase price. Funds drawn under the LOC are held uninvested, and are free from any lien prior to that of the bondholders.

Holders may tender their bonds on any business day, provided the trustee is given the requisite prior notice of the purchase. The bonds are subject to mandatory tender: (1) upon conversion of the interest rate; (2) upon substitution or termination of the LOC; and (3) following receipt of written notice from the bank of an event of default under the Reimbursement Agreement directing such mandatory tender. The bank has the option of directing acceleration rather than a mandatory tender upon an event of default under the Reimbursement Agreement. The bonds shall be accelerated following trustee's receipt of notice of non-reinstatement of the LOC interest. Optional and mandatory redemption provisions also apply to the bonds. Additional bonds may be issued provided they receive a separate series designation and trustee is prohibited from drawing on the LOC to make payment on them.

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.