Summary: Nashville&Davidson County Metropolitan Government, Tennessee; Letter Of Credit

Standard&Poor's Ratings Services assigned its 'A-1' short-term rating to Nashville&Davidson County Metropolitan Government, Tenn.'s $183 million series A water and sewer revenue commercial paper (CP) notes. The rating reflects credit and liquidity support for the notes in the form of an irrevocable direct-pay letter of credit (LOC) from Bank of Tokyo-Mitsubishi UFJ Ltd. (A-1) (acting through its New York branch). The LOC fully supports all CP note payment obligations. When evaluating the notes, we consider various risk factors, as described below. The LOC covers 270 days of interest accruals at a maximum 12% rate and the entire note principal amount. We believe LOC coverage is sufficient to pay interest and principal, even assuming maximum interest rate

...Standard & Poor's Ratings Services assigned its 'A-1' short-term rating to Nashville & Davidson County Metropolitan Government, Tenn.'s $183 million series A water and sewer revenue commercial paper (CP) notes. The rating reflects credit and liquidity support for the notes in the form of an irrevocable direct-pay letter of credit (LOC) from Bank of Tokyo-Mitsubishi UFJ Ltd. (A-1) (acting through its New York branch). The LOC fully supports all CP note payment obligations. When evaluating the notes, we consider various risk factors, as described below....

Summary