Fitch Rates New York City TFA Fiscal 2013 Series C Subseries C-4 and C-5 Bonds 'AAA/F1'

  Fitch Rates New York City TFA Fiscal 2013 Series C Subseries C-4 and C-5
  Bonds 'AAA/F1'

Business Wire

NEW YORK -- November 29, 2012

Fitch Ratings assigns a rating of 'AAA/F1' with a Stable Outlook to the New
York City Transitional Finance Authority's (TFA) $248,000,000 future tax
secured subordinate bonds (multi-modal bonds) fiscal 2013 series C consisting
of $100,000,000 subseries C-4 and $148,000,000 subseries C-5.

The 'AAA' long-term ratings and Stable Rating Outlook are based on the bonds'
strong legal framework and robust debt service coverage supported by a strong
additional bonds test. The bonds are secured by personal income and sales
taxes imposed by the city as authorized by the state. Coverage is expected to
remain at a minimum of 6.7 times (x) through fiscal 2016. New York City's
solid economic underpinnings and manageable additional debt plans further
support the ratings.

The short-term 'F1' rating assigned to fiscal 2013 subseries C-4 bonds is
based on the liquidity support provided by JPMorgan Chase Bank, N.A.,(JPM,
rated 'A/F1'; Stable Outlook by Fitch) in the form of a Standby Bond Purchase
Agreement (SBPA). The short-term 'F1'rating assigned to the fiscal 2013
subseries C-5 bonds is based on the liquidity support provided by Sumitomo
Banking Corporation (Sumitomo, rated 'A-/F1'; Stable Outlook) in the form of a
standby letter of credit Both of the liquidity facilities provide for the
payment of the principal component of purchase price plus an amount equal to
35 days of interest calculated at a maximum rate of 9%, based on a year of 365
days for tendered bonds during the (i) weekly, daily and two-day modes for
subseries C-4 and (ii) weekly rate mode for subseries C-5 in the event that
the proceeds of a remarketing of the bonds are insufficient to pay the
purchase price following an optional or mandatory tender.

The liquidity facilities will expire on Nov. 30, 2015, and on Dec. 4, 2015,
the stated expiration dates of the JPM and Sumitomo facilities, respectively,
unless such dates are extended, conversion to a mode not covered by the
related subseries liquidity facility, or upon the occurrence of certain other
events of default which result in a mandatory tender or other termination
events related to the credit of the bonds which result in an automatic and
immediate termination. The short-term 'F1' rating on each subseries will
expire on the expiration or prior termination of the respective liquidity
facility. The short-term rating may be adjusted upward or downward in
conjunction with the long-term rating of the bonds or the short-term rating of
the related bank. The remarketing agents for the bonds are J.P. Morgan
Securities LLP for the subseries C-4 bonds and TD Securities (USA) LLC for the
subseries C-5 bonds. The fiscal 2013 subseries C-4 and C-5 bonds are expected
to be delivered on or about Dec. 4, 2012.

The subseries C-4 bonds will be issued in the daily rate mode and the
subseries C-5 bonds will bear interest in the weekly rate mode except for a
two day period of Dec. 4 and Dec. 5 when they will bear interest in an initial
rate mode. Both subseries may be converted a daily, two-day, commercial paper,
term, auction, stepped coupon rate. While bonds bear interest in the daily and
weekly rate mode, interest is paid on the first business day of each month,
commencing January 2, 2013. Holders of bonds bearing interest in the daily and
weekly rate modes may tender their bonds for purchase with the requisite prior
notice. The Bank of New York Mellon as tender agent is obligated to make
timely draws on the related liquidity facility to pay purchase price in the
event of insufficient remarketing proceeds, and in connection with the
expiration or termination of the SBPA, except in the case of the
credit-related events permitting immediate termination or suspension of the
SBPA.

Funds drawn under the SBPA are held uninvested and are free from any lien
prior to that of the bondholders. The bonds are subject to mandatory tender:
(1) upon conversion of the interest rate; (2) upon expiration, substitution or
termination of the related liquidity facility; and (3) following the receipt
of written notice from the bank of an event of default under the SBPA,
directing such mandatory tender. Optional and mandatory redemption provisions
also apply to the bonds.

For more information on the long-term rating of New York City Transitional
Finance Authority, see the press release dated Nov. 14, 2012 on Fitch's
website at www.fitchratings.com.

Additional information is available at www.fitchratings.com. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Applicable Criteria and Related Research:
--'U.S. Municipal Structured Finance Criteria' (Feb. 28, 2012); \
--'Rating Guidelines for Variable-Rate Demand Obligations Issued with External
Liquidity Support' (Feb. 1, 2012).

Applicable Criteria and Related Research:
U.S. Municipal Structured Finance Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=672570
Rating Guidelines for Variable-Rate Demand Obligations Issued with External
Liquidity Support
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=668369

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Contact:

Fitch Ratings
Primary Analyst:
Linda Friedman, +1-212-908-0727
Senior Director
Fitch, Inc.
One State Street Plaza
New York NY 10004
or
Secondary Analyst:
Joseph Staffa, +1-212-908-0829
Senior Director
or
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Managing Director
or
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elizabeth.fogerty@fitchratings.com
 
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