TEXT-S&P rates NY Liberty Development (3 WTC) prelim 'A+/A-1'

Tue Jul 31, 2012 3:14pm EDT

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July 31 - Standard & Poor's Ratings Services today assigned its preliminary
'A+/A-1' rating to New York Liberty Development Corp.'s $2.625 million
multimodal liberty revenue refunding bonds series 2011B-2 (for the 3 World Trade
Center project) due Dec. 1, 2049 (the series 2011B-2 Tower 3 bonds).

The preliminary rating is based on information as of July 31, 2012. Subsequent 
information may result in the assignment of a final rating that differs from 
the preliminary rating.

The preliminary rating reflects our opinion of the credit and liquidity 
support that JPMorgan Chase Bank N.A. ('A+/A-1') provides in the form of an 
irrevocable direct-pay letter of credit (LOC). Under the LOC, JPMorgan Chase 
Bank N.A. fully supports all bond payment obligations when the bonds are in 
the daily and weekly interest rate reset modes. Therefore, our preliminary 
rating applies only during these rate modes. If the bonds are converted to 
another rate mode, we will likely withdraw our rating.

The 'A+' long-term component of our preliminary rating is based on our 
long-term issuer credit rating on JPMorgan Chase Bank N.A. and addresses full 
and timely payments of interest and principal when the bondholders have not 
exercised the put option. The 'A-1' short-term component of our preliminary 
rating is based on our short-term issuer credit rating on JPMorgan Chase Bank 
N.A. and addresses full and timely payments of interest and principal when the 
bondholders have exercised the put option.

In view of the series 2011B-2 Tower 3 bonds structure, changes to our rating 
on the daily and weekly rate bonds can result from, among other things, 
changes to our rating on the LOC provider or amendments to the transaction's 
terms. We will maintain a rating on the bonds as long as they are in the daily 
or weekly rate mode and the LOC has not expired or otherwise terminated. If 
either of these conditions changes, we will likely withdraw our rating on the 
bonds.


RELATED CRITERIA AND RESEARCH
     -- Presale: New York Liberty Development Corp. - Series 2011B-2 (For The 
3 World Trade Center Project), July 31, 2012
     -- General Criteria: Methodology And Assumptions: Assigning Ratings To 
Bonds In The U.S. Based On Escrowed Collateral, May 31, 2012
     -- Counterparty Risk Framework Methodology And Assumptions, May 31, 2012
     -- General Criteria: Global Investment Criteria For Temporary Investments 
In Transaction Accounts, May 31. 2012
     -- JPMorgan Chase & Co., April 18, 2012
     -- Methodology And Assumptions: Approach To Evaluating Letter Of 
Credit-Supported Debt, July 6, 2009
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