Fitch Rates New York City Muni Water Finance Auth's Bank Bonds 'AA+'; Outlook Stable

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings assigns an 'AA+' rating to bank bonds corresponding to the following series of New York City Municipal Water Finance Authority's (NYW) water and sewer revenue bonds in the event any bonds of the series are converted to bank bonds in the future:

--$50,000,000 Fiscal 2013 series AA-1 adjustable rate bonds;

--$150,000,000 Fiscal 2013 series AA-2 adjustable rate bonds.

The Rating Outlook is Stable.

The rating is being assigned in connection with the execution of two separate standby bond purchase agreements (SBPAs) under which each of the following banks provide liquidity support for a separate subseries: PNC Bank, National Association (PNC, rated 'A+/F1' with a Stable Outlook by Fitch) for the series AA-1 bonds; and The Bank of Tokyo-Mitsubishi UFJ, Ltd., acting through its New York Branch (BTMU, 'A-/F1'; Stable Outlook), for the series AA-2 bonds effective Oct. 4, 2012. Based on a review of the terms governing bank bonds specified in the SBPA it is Fitch's opinion that the incremental risk associated with bank bonds does not have a material impact on the long-term credit rating.

For more information on Fitch's long-term rating on NYW, see Fitch's press release 'Fitch Rates New York City Muni Water Finance Authority's $458MM Revs 'AA+' dated June 15, 2012, available on Fitch's web site 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.

In addition to the sources of information identified in Fitch's Tax-Supported Rating Criteria, this action was additionally informed by information from Creditscope, University Financial Associates, S&P/Case-Shiller Home Price Index, IHS Global Insight, Zillow.com, National Association of Realtors.

Applicable Criteria and Related Research:

--'Revenue-Supported Rating Criteria' (June 12, 2012);

--'Water and Sewer Revenue Bond Rating Guidelines' (Aug. 3, 2012);

--'2012 Water and Sewer Medians' (Dec. 8, 2011);

--'2012 Outlook: Water and Sewer Sector' (Dec. 8, 2011).

Applicable Criteria and Related Research:

Revenue-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=681015

U.S. Water and Sewer Revenue Bond Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=684901

2012 Water and Sewer Medians

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=657111

2012 Outlook: Water and Sewer Sector

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=657110

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Source: Fitch Ratings