July 24 - On the effective date of July 26, 2012, Fitch Ratings will upgrade the long-term ratings to ‘A+'; Rating Watch Negative, from ‘A’; Stable Outlook, and will confirm the short-term rating of ‘F1’ assigned to (a) $25,000,000 of The Calhoun County Navigation District Solid Waste Disposal Revenue Bonds (Formosa Plastics Corporation, Texas Project), Series 2000 (the Series 2000 Bonds), and (b) $25,000,000 of The Calhoun County Navigation District Solid Waste Disposal Revenue Bonds (Formosa Plastics Corporation, Texas Project), Series 2001 (the Series 2001 Bonds). The ratings actions are in connection with: (1) (a) the substitution for the Series 2000 Bonds of the irrevocable direct-pay letter of credit (LOC) previously provided by Bank of America, N.A. (BANA; rated ‘A/F1’; Stable Outlook) with the substitute LOC issued by JPMorgan Chase Bank, National Association (JPMorgan Chase; rated ‘A+/F1’; Rating Watch Negative), and (b) the substitution for the Series 2001 Bonds of the LOC previously provided by BANA with the substitute LOC issued by JPMorgan Chase; and (2) the mandatory tender of each series of the bonds, which will occur on July 26, 2012. Pursuant to the substitute LOCs, the bank is obligated to make regularly scheduled payments of principal of and interest on the applicable bond series in addition to payments due upon maturity, acceleration and redemption, as well as purchase price for tendered bonds. The ratings for each respective series will expire upon the earliest of: (a) Aug. 10, 2013, the initial stated expiration date of the applicable LOC, unless such date is extended; (b) conversion to any mode other than the weekly mode for the applicable series; (c) any prior termination of the applicable LOC; and (d) defeasance of the applicable bond series. The respective JPMorgan Chase LOCs provide full and sufficient coverage of principal plus an amount equal to 35 days of interest at a maximum rate of 12% based on a year of 365 days and purchase price for tendered bonds for the applicable series, while in the weekly rate mode. The Remarketing Agent for both series is J.P. Morgan Securities LLC.