Dec 13 - Standard & Poor’s Ratings Services today assigned its ‘AA-/A-1+’ rating to TMF Biofuels LLC’s $17.00 million taxable variable-rate demand revenue bonds series 2012.
The rating reflects our opinion of the credit and liquidity support that Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank Nederland) (‘AA-/A-1+') provides in the form of an irrevocable direct-pay letter of credit (LOC). Under the LOC, Rabobank Nederland fully supports all bond payment obligations.
The ‘AA-’ long-term component of our rating is based on our long-term issuer credit rating on Rabobank Nederland 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 rating is based on our short-term issuer credit rating on Rabobank Nederland and addresses full and timely payments of interest and principal when the bondholders have exercised the put option.
In view of the series 2012 bond structure, changes to our rating on the weekly rate bonds can result from, among other things, changes to our rating on the LOC provider or amendments to the transaction’s terms. In any event, we will maintain a rating on the bonds as long as the LOC has not expired or otherwise terminated. If these conditions change, we will likely withdraw our rating on the bonds.
-- Counterparty Risk Framework Methodology And Assumptions, Nov. 29, 2012
-- Methodology And Assumptions: Approach To Evaluating Letter Of Credit-Supported Debt, July 6, 2009
-- New Issue: TMF Biofuels LLC - Series 2012, Dec. 13, 2012
-- Rabobank Nederland Ratings Lowered To ‘AA-’ On Increased Economic Risks In The Netherlands; Outlook Stable, Nov. 16, 2012