Fitch Downgrades NY Liberty Dev Corp Ser 2005, 2007 Revs (Goldman Sachs Headquarters Issue) to 'A+'

Wed Jan 26, 2011 6:15pm EST

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Fitch Downgrades NY Liberty Dev Corp Ser 2005, 2007 Revs (Goldman Sachs Headquarters Issue) to 'A+'

Fitch Ratings has downgraded to 'A+' the New York Liberty Development Corporation revenue bonds (Goldman Sachs Headquarters Issue), series 2005, 2007 (GS series) rating. This rating action reflects guarantor Goldman Sachs Group, Inc.'s (Goldman) prior long-term debt downgrade to 'A+' that took place on Jan. 27, 2009. The three following CUSIPS are affected: 531127AB4/531127AC2/531127CM8.

The rating is based upon Goldman's formal support of its subsidiary, Goldman Sachs Headquarters LLC. As such, the rating equals the long-term, senior, unsecured debt rating that Fitch maintains on Goldman. Future ratings are subject to change based on Fitch's ongoing evaluation of the financial condition of Goldman.

The GS series bonds were issued by the New York Liberty Development Corporation. Proceeds were onlent to Goldman Sachs Headquarters LLC (GS Headquarters), a wholly owned subsidiary of Goldman. GS Headquarters used the borrowed funds to finance a portion of the construction of the new Goldman headquarters. Goldman guarantees its subsidiary's payment obligation to New York Liberty Development Corporation. As of today, outstandings under series 2005, 2007 total approximately $1.5 billion. Interest is payable semi-annually. The bonds mature in 2015, 2035 and 2037.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Financial Institutions Criteria' (Aug. 16, 2010);

--'Rating Criteria for Securities Firms' (Dec. 30, 2009).

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547685

Rating Criteria For Securities Firms - Financial Institutions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=493276

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '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
Primary Analyst:
Leslie S. Bright, +1-212-908-0622
Senior Director
One State Street Plaza
New York, NY 10001
or
Secondary Analyst:
Fabrice Toka, +1-212-908-0369
Senior Director
One State Street Plaza
New York, NY 10001
or
Committee Chairperson:
Sharon Haas, +1-212-908-0362
Managing Director
or
Media Relations:
Brian Bertsch, New York, +1-212-908-0549
brian.bertsch@fitchratings.com
Cindy Stoller, New York, +1-212-908-0526
cindy.stoller@fitchratings.com

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