2008-06-17 23:33:30 -
- Fitch Ratings has assigned 'AA/F1+' ratings to the State of Oregon's (the state) $38,885,000 general obligation (GO) veterans' welfare bonds series 90B (Non-AMT) (variable-rate). The long-term 'AA' rating is based on the long-term rating assigned to the state's GO bonds, which Fitch upgraded last week. For more information see Fitch's June 9 release ('Fitch Rates Oregon GOs 'AA'; Upgrades
Outstanding GOs; Outlook to Stable'), available at www.fitchratings.com.
The series 90B bonds are expected to be available for delivery on or about June 24, 2008. J.P. Morgan Securities Inc. is the remarketing agent for the bonds.
The short-term 'F1+' rating is based on the liquidity support provided by Dexia Credit Local, acting through its New York Branch, in the form of a standby bond purchase agreement (SBPA). The SBPA provides for the payment of the purchase price of tendered bonds during the weekly and monthly rate modes in the event that remarketing proceeds are insufficient to pay the purchase price. The SBPA is sized to provide for the entire principal amount of the bonds, plus 34 days of interest at the maximum interest rate of 12% based on a year of 365 days. The SBPA will expire on Dec. 31, 2013, unless extended, or upon the occurrence of other events of termination, according to its terms. Fitch's short-term rating on the bonds will expire upon any expiration or termination of the SBPA.
The bonds initially bear interest in the weekly rate mode, but may be converted to a daily, monthly, quarterly, semiannual, auction, fixed or indexed rate mode. While the bonds bear interest in the daily, weekly or monthly rate modes, interest is payable on the first business day of each calendar month. Holders of bonds bearing interest in the daily, weekly or monthly rate modes may tender their bonds for purchase with prior notice. The bonds are subject to mandatory tender: (1) on any interest rate mode change date; (2) on any date the bonds are converted to a fixed or indexed rate mode; (3) upon the termination, substitution or expiration of the SBPA. The bonds are also subject to optional and mandatory redemption provisions pursuant to the terms of the Certificate of Determination and Resolution.
The bonds are being issued to benefit the veterans' welfare program, which funds housing mortgage loans.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Fitch Ratings, New York
Linda Friedman, +1-212-908-0727 (the short-term rating)
Kenneth Weinstein, +1-212-908-0571 (State of Oregon)
Christopher Kimble, +1-212-908-0226 (Media Relations)
