TEXT - Fitch takes rating actions on enhanced muni bonds & TOBs

Wed Feb 6, 2013 12:27pm EST

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Feb 6 - Fitch Ratings has taken various conforming rating actions on
enhanced municipal bonds and tender option bonds (TOBs) corresponding to actions
taken on their associated enhancement providers or underlying bonds.

Long-term ratings on enhanced municipal bonds may be higher than those of their 
enhancement providers as discussed in Fitch's 'Dual-Party Pay Criteria for 
Long-Term Ratings on LOC-Supported U.S. Public Finance Bonds', dated March 9, 

Short-term ratings on enhanced municipal bonds may be lower than those of their 
liquidity providers, as discussed in Fitch's 'Rating Guidelines for 
Variable-Rate Demand Obligations Issued with External Liquidity Support', dated 
Feb. 1, 2012.

Long-term ratings assigned to TOBs are the higher of the ratings assigned by 
Fitch to the applicable enhancement providers supporting the bonds and the 
ratings assigned by Fitch to the underlying bonds deposited in the issuing 
trust. Short-term ratings on TOBs, if assigned, are based on ratings assigned by
Fitch to their liquidity providers, with consideration given to the TOBs' 
long-term ratings.
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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