TEXT - Fitch rates Municipal Electric Auth of Georgia power rev bonds

Wed Dec 12, 2012 10:45am EST

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Dec 12 - Fitch Ratings assigns an 'AAApre', Negative Outlook rating to the
Municipal Electric Authority of Georgia (MEAG) $34,685,000 power revenue bonds,
series FF maturing Jan. 1, 2014- 2023 and Jan. 1, 2026 (FF bonds), and MEAG's
$49,665,000 general power revenue bonds, 2002A series maturing Jan. 1, 2017 and
Jan. 1, 2018 (2002A bonds).  The FF bonds were refunded on Oct. 22, 2012 with
proceeds of MEAG's $140,015,000 power revenue bonds, series GG and other funds
of MEAG.  The 2002A bonds were refunded on Oct. 22, 2012 with proceeds of MEAG's
$49,490,000 general power revenue bonds, 2012B series and other funds of MEAG. 
All of these refunded bonds will be redeemed on Jan. 1, 2013 at par.

The Trustee, The Bank of New York Mellon, holds separate irrevocable trust funds
for the benefit of the holders of the respective series of refunded bonds.  
Refunded bondholders have a first lien on all funds and securities held in these
accounts, which the Trustee may use only to pay principal and interest due on 
the refunded bonds upon redemption.  The 'AAApre', Negative Outlook rating 
reflects this lien and that all funds have been invested in direct non-callable 
obligations of the United States.  Fitch's U.S. full faith and credit rating is 
currently 'AAA', Negative Outlook.  Any substitute investments acquired in the 
future are also limited to direct non-callable obligations of the United States.
 

The Arbitrage Group, Inc. verified the mathematical accuracy of computations 
relating to the sufficiency of receipts from escrowed funds and securities to 
pay principal and interest on the refunded bonds on the redemption date.  These 
computations were contained in schedules provided to them by Merrill Lynch, 
Pierce, Fenner & Smith Incorporated, underwriter for the refunding bonds.  
According to The Arbitrage Group verification report, the receipts from the 
securities and cash deposited will be sufficient to pay the principal of and 
interest on the refunded bonds upon redemption.  Prior to accepting substitute 
or additional investment securities, the Trustee must receive a new report 
verifying the continued sufficiency of escrowed funds to meet all future 
payments of principal and interest on the refunded bonds.

The 'AAApre' rating applies to the bonds with the following CUSIP numbers: 

373541WU1
373541WV9
373541WW7
373541WX5
373541WY3
373541WZ0
373541XA4
373541XB2
373541XC0
373541XD8
373541XF3
373541XE6
373541VF5
373541VG3
373541VH1
373541VJ7
FILED UNDER:
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