Moodys.com
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Rating Update:

MOODY'S AFFIRMS THE Aa3/VMIG 1 RATING ASSIGNED TO SUN DEVIL ENERGY CENTER, LLC VARIABLE RATE DEMAND REVENUE REFUNDING BONDS (ARIZONA STATE UNIVERSITY PROJECT) SERIES 2008

18 Nov 2010

$49.41 MILLION IN DEBT AFFECTED.

Sun Devil Energy Center LLC, AZ
Fully Supported
AZ

Opinion

NEW YORK, Nov 18, 2010 -- Moody's Investors Service has affirmed the Aa3/VMIG 1 rating assigned to Sun Devil Energy Center, LLC (Issuer) Variable Rate Demand Revenue Refunding Bonds (Arizona State University Project) Series 2008 (the Bonds) in conjunction with the substitution of the current standby bond purchase agreement provided by RBC Bank (USA) with a standby bond purchase agreement from Royal Bank of Canada (the Bank).

RATING RATIONALE

The long term rating will continue to be based upon the higher of the underlying rating on the Bonds or the financial strength rating of the bond insurer, Assured Guaranty Corp. (AGC). Upon the replacement of the SBPA, scheduled for November 18, 2010, the short-term rating will reflect the credit quality of the Bank as the SBPA provider, the structure of the SBPA and the financial strength rating of AGC as well as the likelihood of the termination of the SBPA without a mandatory purchase of the bonds. Events that would cause the SBPA to terminate without a mandatory purchase of the Bonds are directly related to the credit quality of AGC. In addition, the rating reflects the adequate structure of the transaction as well as legal protections, which ensure timely payments of principal, interest and purchase price on the Bonds.

The underlying rating on the Bonds is A1. For more information on the underlying rating please see report dated June 23, 2010 on moodys.com. Moody' rates AGC Aa3 with a negative outlook. The long-term and short-term deposit ratings of Royal Bank of Canada are Aaa (on watch for downgrade)/P-1, respectively.

Description of the Bonds

The Bonds will continue to bear interest at a weekly rate and pay interest on the first business day of each month. The interest rate on the Bonds may be converted, in whole, to a daily rate, flexible rate, or fixed rate. Upon conversion of the Bonds to another rate mode, the Bonds will be subject to mandatory tender at a price of par plus accrued interest. The SBPA only supports the Bonds while they bear interest in the weekly rate, therefore upon conversion of all the Bonds to an interest rate mode other than weekly the VMIG rating will expire.

The trustee will pay principal and interest on the Bonds, whether on an interest payment date, at maturity or upon mandatory sinking fund redemption, from funds of the Issuer and to the extent such moneys are insufficient from funds obtained under the AGC insurance policy. In addition, the policy covers any payments made to bondholders by the Issuer, which are deemed preferential transfers subject to recovery under the applicable bankruptcy code. Purchase price payments will be paid from remarketing proceeds and, to the extent insufficient, from a draw under the SBPA.

Bondholders may, at their option, tender their Bonds during the weekly rate on any business day upon seven days prior written notice to the trustee and tender agent. Bonds, which are purchased by the Bank due to a failed remarketing, may not be released until the SBPA has been fully reinstated in the amount of the purchase price drawn for such Bonds.

Substitution of the SBPA is permitted and requires a mandatory tender on the date of substitution of the liquidity facility. Upon substitution the existing standby bond purchase agreement will be drawn upon for purchase price and the trustee shall not surrender the standby bond purchase agreement for cancellation until any required drawings have been made and honored.

The Bonds are subject to mandatory tender on a date at least 3 business days preceding the expiration or termination of the SBPA, including termination following the trustee's receipt of notice of termination from the Bank due to an event of default under the SBPA. The SBPA will terminate on the 30th day following the trustee's receipt of such notice of termination.

Insurance Policy and Standby Bond Purchase Agreement

All regularly scheduled payments of principal and interest, whether due on an interest payment date, at maturity, or upon mandatory sinking fund redemption, will be secured by the municipal bond insurance policy provided by AGC.

Security for all payments of purchase price upon optional or mandatory tender is derived from the SBPA provided by the Bank, which is sized for full principal plus 34 days of interest at a rate of 12%, the maximum rate on the Bonds. The SBPA will secure payments of purchase price while Bonds bear interest in the weekly rate to the extent that remarketing proceeds are insufficient.

The trustee is instructed to draw on the SBPA by 1:00 p.m.(New York City time) on each purchase date to the extent that remarketing proceeds have not been received. Draws submitted under the SBPA by 1:00 p.m. (New York City time) will be paid by the Bank by 2:45 p.m. (New York time) on the same business day. The SBPA will be reinstated for the amount of a draw upon reimbursement to the Bank.

The SBPA will expire upon the earliest to occur of: (i) November 18, 2013, the scheduled expiration date; (ii) the date of receipt by the Bank of notice from the trustee stating that the interest rate on all the Bonds have been converted to a rate mode other than the weekly rate and the mandatory purchase has occurred; (iii) the date of receipt by the Bank of notice from the trustee stating that a substitute liquidity facility has been provided and become effective and the mandatory purchase has occurred; (iv) the date which is 30 days following receipt by the trustee of notice of termination from the Bank due to an event of default under the SBPA; or (v) upon an automatic termination event under the SBPA.

The Bank's obligation to purchase Bonds under the SBPA may be immediately terminated or suspended upon the occurrence of the following events: (i) the bond insurer shall fail to make payment of principal and interest on any Bond when due as required under the bond insurance policy; (ii) the bond insurance policy or any material provision of the bond insurance policy relating to payments of principal and interest on the Bonds (a) ceases to be valid and binding on the bond insurer; or (b) is declared to be null and void by a court or other governmental agency with jurisdiction; (iii) the bond insurer shall: (a) contest in writing the validity or enforceability of the bond insurance policy or any material provision of the bond insurance policy relating to payments of principal and interest on the Bonds; or (b) deny that it has any or further liability or obligation under the bond insurance policy or any material provision of the bond insurance policy relating to payments of principal and interest on the Bonds; (iv) the bond insurer or any governmental authority with jurisdiction over the bond insurer shall declare a moratorium on payment by the bond insurer of any obligation under a financial guaranty insurance policy; (v) upon bankruptcy of insolvency of the bond insurer; (v) a payment default by the bond insurer in respect of any other bond insurance policy insuring publicly rated debt; (vi) each rating agency then rating the Bonds shall have withdrawn or suspended the long-term ratings of the bond insurer or downgraded the such ratings to below investment grade; or (vii) the bond insurance policy is surrendered , cancelled, suspended, nullified, terminated, amended, modified, or replaced without the prior written consent of the Bank.

The Issuer shall not amend or otherwise modify, terminate, surrender, cancel, suspend, nullify or replace the bond insurance policy or agree or permit the trustee to amend or otherwise modify, terminate, surrender, cancel, suspend, nullify or replace the bond insurance policy, in any case, without (A) the prior written consent of the Bank and (B) written evidence from each rating agency then providing a rating on the Bonds that the then current long-term ratings on the Bonds have been confirmed.

What Could Change the Rating-Up

Long-Term: The long-term rating on the Bonds could be upgraded if either the financial strength rating of the bond insurer was upgraded or the long-term underlying rating of the Bonds was upgraded above the current financial strength rating of the bond insurer.

Short-Term: Not applicable.

What Could Change the Rating-Down

Long-Term: The long-term rating on the Bonds could be lowered if the financial strength rating of the bond insurer was downgraded.

Short-Term: The short-term rating on the Bonds could be lowered if either the short-term deposit rating on the Bank was downgraded or the financial strength rating of the bond insurer was downgraded.

Contacts:

Remarketing Agent: RBC Capital Markets

Trustee: The Bank of New York Mellon Trust Company, N.A.

The principal methodologies used in this rating were Moody's Rating Methodology for Analyzing Insured Floating Rate Bonds published in November 2005.

Moody's adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.

Please see ratings tab on the issuer/entity page on Moodys.com for the last rating action and the rating history.

The date on which some Credit Ratings were first released goes back to a time before Moody's Investors Service's Credit Ratings were fully digitized and accurate data may not be available. Consequently, Moody's Investors Service provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

Please see the Credit Policy page on Moodys.com for the methodologies used in determining ratings, further information on the meaning of each rating category and the definition of default and recovery.

Analysts

Michael J. Loughlin
Analyst
Public Finance Group
Moody's Investors Service

Joann Hempel
Senior Credit Officer
Public Finance Group
Moody's Investors Service

Contacts

Journalists: (212) 553-0376
Research Clients: (212) 553-1653


Moody's Investors Service
250 Greenwich Street
New York, NY 10007
USA

MOODY'S AFFIRMS THE Aa3/VMIG 1 RATING ASSIGNED TO SUN DEVIL ENERGY CENTER, LLC VARIABLE RATE DEMAND REVENUE REFUNDING BONDS (ARIZONA STATE UNIVERSITY PROJECT) SERIES 2008
No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​​​
Moodys.com