...This report outlines Fitch Ratings' criteria for assigning short-term ratings to new and existing U.S. variable-rate demand obligations (VRDOs) and commercial paper (CP) issued with the support of external liquidity facilities, as well as for the surveillance of existing ratings assigned pursuant to these criteria. External liquidity facilities are dedicated third-party facilities provided by banks or other entities that are available to the trustee and paying agent for the benefit of debtholders and exclusively for the repayment of specified short-term debt. Fitch considers the liquidity provider's ability to honor its liquidity commitments when assigning a short-term rating to obligations backed by these liquidity facilities. Under the terms of the debt instrument documentation, holders of VRDOs are entitled to receive a purchase price equal to the principal of and accrued interest on their bonds upon the exercise of a tender option or any mandatory tender of the bonds. If tendered bonds...
