Austin, TX Series 2008 Revenue Refunding Bond Rating Lowered To 'A/A-1' On Enhancement Substitution

NEW YORK (Standard&Poor's) May 8, 2015--Standard&Poor's Ratings Services lowered its rating on Austin, Texas' series 2008 water and wastewater system variable-rate revenue refunding bonds to 'A/A-1' from 'A+/A-1'. This action reflects a new bond enhancement in the form of a direct-pay letter of credit (LOC) from Citibank N.A. (A/A-1), substituting LOCs severally provided by Sumitomo Mitsui Banking Corp. (A+/A-1) and Bank of Tokyo Mitsubishi UFJ Ltd. (A+/A-1). The long-term and short-term components of the rating on the bonds will reflect the rating on Citibank N.A. The LOC substitution is scheduled for May 8, 2015. The anticipated LOC expiration date is Oct. 15, 2018, unless the LOC is extended or terminated beforehand according to its terms. RELATED

...NEW YORK (Standard & Poor's) May 8, 2015--Standard & Poor's Ratings Services lowered its rating on Austin, Texas' series 2008 water and wastewater system variable-rate revenue refunding bonds to 'A/A-1' from 'A+/A-1'. This action reflects a new bond enhancement in the form of a direct-pay letter of credit (LOC) from Citibank N.A. (A/A-1), substituting LOCs severally provided by Sumitomo Mitsui Banking Corp. (A+/A-1) and Bank of Tokyo Mitsubishi UFJ Ltd. (A+/A-1). The long-term and short-term components of the rating on the bonds will reflect the rating on Citibank N.A. The LOC substitution is scheduled for May 8, 2015. The anticipated LOC expiration date is Oct. 15, 2018, unless the LOC is extended or terminated beforehand according to its terms. RELATED CRITERIA AND RESEARCH Related Criteria + Criteria: Understanding Standard & Poor's Rating Definitions, June 3, 2009 + Structured Finance Criteria: Counterparty Risk Framework Methodology And Assumptions, June 25, 2013 + Criteria: Methodology...

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