New York, April 08, 2011 -- Moody's Investors Service has taken action for the long-term
and short-term ratings assigned to various tender option bond trusts
as listed below.
SUMMARY RATING RATIONALE
The rating actions are based on the downgrade and watchlist action of
the underlying bonds held in the trusts which provides the cash flow for
the payment of principal and interest on the trust certificates.
The short term portion of the rating on the trust certificates is based
upon (i) the short-term rating of the liquidity providers;
(ii) the long-term rating of the underlying bond and (iii) the
likelihood of an early termination of the liquidity facility without a
final mandatory tender. Events that would cause the liquidity facility
to terminate without a mandatory purchase of the certificates are directly
related to the credit quality of the underlying bond. Therefore
the short-term rating will be changed whenever the rating of the
liquidity provider changes and may be changed if the long-term
rating of the underlying bond changes.
Debt Affected and Rating Actions:
Baclays Capital Inc. (Muni. Deriv.) Floating Rate
Trust Receipts, Series 2010-7W FR
- The long term rating of Aa2 has been placed on watch for possible
downgrade.
Barclays Capital Inc. (Muni. Deriv.) Floating Rate
Trust Receipts, Series 2010-2W FR
- The long term rating of Aa2 has been placed on watch for possible
downgrade.
BB&T Municipal Trust (Muni. Deriv.) FR/RI Certificates,
Series 2008-06
- The long term rating has been downgraded to Aa2 from Aa1.
BB&T Municipal Trust (Muni. Dervi.) FR/RI Certificates,
Series 2008
- The long term rating has been downgraded to Aa3 from Aa2.
Citigroup Financial Products Inc. (Muni. Deriv.)
Reset Option Certificate II-R (ROCs) & Reset Option Longs (ROLs),
Series 11445
- The long term rating of A3 has been placed on watch for possible
downgrade.
Dexia Credit Local Certificates Trust (Muni. Deriv.) Floater
Certificates, Series 2007-003
- The long term rating of A1 has been placed on watch for possible
downgrade.
Dexia Credit Local Certificates Trust (Muni. Deriv.) Floater
Certificates, Series 2007-005
- The long term rating of A1 has been placed on watch for possible
downgrade.
Dexia Credt Local Certificates Trust (Muni. Deriv.) Floater
Certificates, Series 2008-031
- The long term rating has been downgraded to Aa1 from Aaa (On
Watch for Possible Downgrade).
J.P. Morgan Securities, Inc. (Muni.
Deriv.) Puttable Tax-Exempt Receipts (PUTTERs) & Derivative
Inverse Tax-Exempts Receipts, Series 1284B
- The long term rating of Aa2 has been placed on watch for possible
downgrade.
J.P. Morgan Securities, Inc. (Muni.
Deriv.) Puttable Tax-Exempt Receipts (PUTTERs) & Derivative
Inverse Tax-Exempts Receipts, Series 2878
- The long term rating of A3 and the short-term rating of
VMIG 2 has been placed on watch for possible downgrade.
J.P. Morgan Securities, Inc. (Muni.
Deriv.) Puttable Tax-Exempt Receipts (PUTTERs) and Derivative
Inverse Tax-Exempt Receipts, Series 3103
- The long term rating of A3 and the short-term rating of
VMIG 2 has been placed on watch for possible downgrade.
J.P. Morgan Securities, Inc. (Muni.
Deriv.) Puttable Tax-Exempt Receipts (PUTTERs) and Derivative
Inverse Tax-Exempt Receipts, Series 3137
- The long term rating of A3 and the short-term rating of
VMIG 2 has been placed on watch for possible downgrade.
J.P. Morgan Securities, Inc. (Muni.
Deriv.) Puttable Tax-Exempt Receipts (PUTTERs) & Derivative
Inverse Tax-Exempts Receipts, Series 1210B
- The long term rating of Aa2 has been placed on watch for possible
downgrade.
J.P. Morgan Securities, Inc. (Muni.
Deriv.) Puttable Tax-Exempt Receipts (PUTTERs) & Derivative
Inverse Tax-Exempts Receipts, Series 1245
- The long term rating of Aa2 has been placed on watch for possible
downgrade.
Merrill Lynch & Co. (Muni. Deriv.) Puttable Floating
Option Tax-Exempts Receipts & Residual Tax-Exempts Receipts,
Series PT-4391
- The long term rating of A1 has been placed on watch for possible
downgrade.
Merrill Lynch & Co. (Muni. Deriv.) Puttable Floating
Option Tax-Exempts Receipts & Residual Tax-Exempts Receipts,
Series PT-4481
- The long term rating of A1 has been placed on watch for possible
downgrade.
Merrill Lynch & Co. (Muni. Deriv.) Puttable Floating
Option Tax-Exempts Receipts & Residual Tax-Exempts Receipts,
Series PA-1404R
- The long term rating of Aa2 has been placed on watch for possible
downgrade.
Wachovia Bank, N.A. Municipal Exempt Receipts Liquidity
Optional Tender (MERLOTs) Series 2001 A51
- The long term rating of Aa2 has been placed on watch for possible
downgrade.
Wachovia Bank, N.A. Municipal Exempt Receipts Liquidity
Optional Tender (MERLOTs), Series 2001 A82
- The long term rating of Aa2 has been placed on watch for possible
downgrade.
WHAT COULD CHANGE THE RATING GO UP
Long Term: The long-term rating on the trust certificates
could be raised if the rating on the underlying bond was upgraded.
Short Term: The short-term rating on the trust certificates
could be raised if the short-term rating of the liquidity facility
provider was upgraded or if the rating on the underlying bond was upgraded.
WHAT COULD CHANGE THE RATING GO DOWN
Long Term: The long-term rating on the trust certificates
could be lowered if the rating on the underlying bond was downgraded.
Short Term: The short-term rating on the trust certificates
could be lowered if the short-term rating of the liquidity facility
provider was downgraded or if the rating on the underlying bond was downgraded.
Please see ratings tab on the issuer/entity page on Moodys.com
for the last rating action and the rating history.
PRINCIPAL METHODOLOGY USED
The principal methodology used in rating this issue was Tender Option
Bonds Programs rating methodology published in September 2005.
REGULATORY DISCLOSURES
Information sources used to prepare the credit rating are the following:
parties involved in the ratings and public information.
Moody's Investors Service considers the quality of information available
on the issuer or obligation satisfactory for the purposes of assigning
a credit rating.
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.
New York
Randy Matlosz
Associate Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Joann Hempel
VP - Senior Credit Officer
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's Investors Service
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
MOODY'S TAKES RATING ACTION ON THE LONG-TERM AND SHORT-TERM RATINGS ASSIGNED TO VARIOUS TENDER OPTION BOND TRUSTS DUE TO DOWNGRADE AND WATCHLIST ACTIONS OF UNDERLYING BONDS
