$150M of debt affected. Ratings based on joint support from BTMU and RBC as LOC providers and New York City.Moody’s RatingIssue: Subseries 2015 F-4; Rating: Aa1/VMIG 1; Sale Amount: $100,000,000; Expected Sale Date: 6/18/2015; Rating Description: LOC –Direct PayIssue: Subseries 2015 F-7; Rating: Aa1/VMIG 1; Sale Amount: $50,000,000; Expected Sale Date: 6/18/2015; Rating Description: LOC –Direct PayMoody’s Investors Service has assigned Aa1/VMIG 1 letter of credit (LOC) backed ratings to the City of New York General Obligation Bonds, Fiscal 2015, Ser. F, Subseries F-4 and Subseries F-7 (the Bonds). This assignment is in connection with the issuance of LOCs provided by The Bank of Tokyo Mitsubishi UFJ, Ltd. (BTMU) and the Royal Bank of Canada (RBC and, together with BTMU, the Banks) for Subseries F-4 and Subseries F-7, respectively, currently scheduled for June 18, 2015.SUMMARY RATINGS RATIONALEMoody’s has evaluated the Bonds based on a joint default analysis (JDA) which reflects Moody’s approach to rating jointly supported transactions. JDA incorporates: (i) the long-term Counterparty Risk Assessment (CR Assessment) of the Banks, as providers of the LOCs, and the underlying rating of the Bonds; (ii) the probability of default in payment by the applicable Bank and the City of New York (Issuer); and (iii) the structure and legal protections of the transaction, which provide for timely debt service payments. Moody’s assessment of the likelihood of timely payment of purchase price is reflected in the short-term ratings of the Bonds. The short-term ratings are based on the short-term CR Assessments of the Banks.Moody’s current long-term and short-term CR Assessments of BTMU are A1 (cr) and P-1(cr), respectively. Moody’s current long-term and short-term CR Assessments of RBC are Aa2(cr) and P-1(cr), respectively. Moody’s currently maintains an underlying rating of Aa2 on the Bonds.WHAT COULD CHANGE THE RATINGS-UPLong-Term: The long-term JDA ratings of the Bonds could be upgraded if Moody’s were to raise the long-term CR Assessment of the applicable Bank or upgrade the underlying rating of the Bonds.Short-Term: Not ApplicableWHAT COULD CHANGE THE RATINGS-DOWNLong-Term: The long-term JDA rating of the Bonds could be downgraded if Moody’s were to lower the long-term CR Assessment of the applicable Bank or downgrade the underlying rating of the Bonds, or if the level of default dependence, as determined by Moody’s, between the applicable Bank and the Issuer increases.Short-Term: The short-term ratings of the Bonds would be downgraded if Moody’s were to lower the short-term CR Assessment of the applicable Bank.
The material has been provided by InstaForex Company – www.instaforex.com