TEXT-Fitch rates Union County, N.C. enterprise system revs 'AA'
Sept 17 - Fitch Ratings assigns an 'AA' rating to bank bonds corresponding to the following variable rate revenue bonds issued by Union County, NC: --$18.6 million outstanding variable rate enterprise system revenue bonds, series 2009. The Rating Outlook is Stable. The rating is being assigned in connection with the substitution of the letter of credit (LOC) issued by Bank of America, N.A. (rated 'A'/'F1'; Outlook Stable by Fitch) with a liquidity facility provided by U.S. Bank, National Association, (U.S. Bank, N.A., rated 'AA-'/'F1+'; Outlook Stable) in the form of a standby bond purchase agreement (SBPA) effective Aug. 30, 2012. Fitch has reviewed the terms governing bank bonds specified in the standby bond purchase agreement and believes that the incremental risk associated with bank bonds does not have a material impact on the enterprise system revenue bonds' long-term credit rating. For more information, see Fitch's press release 'Fitch Rates Union County, NC's Rev Rfdg Bonds 'AA'; Outlook Stable', dated Nov. 21, 2011, and available on Fitch's website 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 U.S. Water and Sewer Revenue Bond Rating Criteria 2012 Water and Sewer Medians 2012 Outlook: Water and Sewer Sector