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By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

 

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2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

 

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Rating Action:

Moody's assigns VMIG-1 to Sevier County PBA's, TN Local Government Public Improvement Bonds, Series VI-K-1 (Knox County, TN)

19 Nov 2019

New York, November 19, 2019 -- Moody's Investors Service has assigned the VMIG-1 short-term rating to the Sevier County Public Building Authority, Tennessee Local Government Public Improvement Bonds, Series VI-K-1 (the Bonds) in conjunction with a conversion of the Bonds from the index rate period to the daily rate period, currently scheduled for December 2, 2019. The Bonds are secured by loan payments from Knox County, TN (the Borrower) which are absolute and unconditional, and are backed by the County's general obligation, unlimited tax pledge. Moody's maintains a Aa1 on the Series VI-K-1 as well as the county's outstanding rated general obligation debt.

RATINGS RATIONALE

The VMIG 1 short-term rating is derived from (i) the credit quality of U.S. Bank National Association (the Bank) as liquidity support provider under the Standby Bond Purchase Agreement (SBPA or Liquidity Facility), (ii) the long-term rating of the Bonds and (iii) Moody's assessment of the likelihood of an early termination of the SBPA without a final mandatory tender. Events that would cause termination of the SBPA without a mandatory purchase of the Bonds are directly related to the credit quality of the Borrower. Accordingly, the likelihood of any such event occurring is reflected in the Aa1 long-term rating currently assigned to the Bonds. Our current short-term Counterparty Risk (CR) Assessment of the Bank is P-1(cr).

FACTORS THAT COULD LEAD TO AN UPGRADE

-Not applicable

FACTORS THAT COULD LEAD TO A DOWNGRADE

-Moody's downgrades the short-term CR Assessment of the Bank.

-Moody's downgrades the long-term rating of the Bonds.

LIQUIDITY SUPPORT FOR TENDERS

The Bank may automatically terminate its payment obligation under the SBPA upon:

-Non payment of principal and/or interest on the Bonds or on any parity debt;

-A final and non-appealable judgment against the Borrower in excess of $5 million remains unpaid, unstayed, undischarged or undismissed for a period of 60 days;

-bankruptcy or insolvency of the Borrower;

-the Borrower imposes a debt moratorium, debt restructuring or comparable extraordinary restriction on repayment of debt with respect to the Bonds, liquidity advances or any general obligation debt; or any government authority with jurisdiction over the Borrower imposes a debt moratorium or debt restructuring or comparable extraordinary restriction on repayment of debt with respect to the Bonds, liquidity advances or all general obligation debt;

-Any provision of the governing transaction documents relating to the payment of principal of and interest on the Bonds, Bank Bonds, general obligation debt or the pledge of the full faith and credit and taxing power of the Borrower shall cease to be valid and binding or fully enforceable as determined by any governmental authority; validity or enforceability of any provisions in the governing transaction documents related to payment of principal and interest or the pledge of the full faith and credit and taxing power of the Borrower shall be contested or repudiated in writing by the Borrower, or a court or government authority shall make a finding or ruling that (i) contests or repudiates the validity or enforceability of such provisions, or (ii) the Bonds or any governing transaction document is null and void, or not binding; the Borrower shall deny that it has any liability or obligation under the governing transaction documents; a court or any government authority shall find or rule that the holders of the Bonds and general obligation debt cease to have an effective pledge of the full faith and credit and taxing power of the Borrower;

-withdrawal, suspension or downgrade below investment grade of the long-term rating of the Bonds or any other parity debt by each rating agency then rating the Bonds;

-dissolution or termination of the existence of the Borrower

The Bonds are converting to the daily rate period with interest paid on the first day of each March, June, September and December. The interest rate period may be converted, in whole, to the weekly, short-term, medium-term, CP, fixed or ARS rate period. Bonds so converted will be subject to mandatory tender upon each rate period change date. Moody's short-term rating applies while the Bonds are in the daily and weekly rate periods only.

Bonds in the daily rate period are subject to optional tender on any business day with notice to the trustee and the remarketing agent by 10:00 a.m., New York City time. Bonds in the weekly rate period may be optionally tendered on any business day with notice to the trustee and the remarketing agent not less than seven days prior to the purchase date.

The Bonds are subject to mandatory tender on: (i) each rate period change date; (ii) the third business day prior to the expiration date of the SBPA; (iii) the business day prior to the effective date of the substitute SBPA; (iv) the fifteenth (15th) day (or if not a business day, the next succeeding business day) following the trustee's receipt of notice of the occurrence of an event of default under the SBPA (other than an automatic termination event).

The SBPA, which is sized for the full principal amount of the Bonds plus 95 days of interest at 15%, the maximum rate for the Bonds, will secure payments of purchase price while the Bonds are in the daily or weekly rate periods. The SBPA will be available to pay purchase price to the extent remarketing proceeds received are insufficient. Under the terms of the SBPA, conforming draws received by the Bank by 12:00 p.m. (New York time) will be honored by 2:30 p.m. (New York time) on the same business day.

The SBPA terminates upon the earliest to occur: (a) the stated expiration date, December 1, 2022; (b) the date on which the SBPA is terminated in its entirety due to the occurrence of an automatic termination event; (c) the date on which all of the Bonds have been redeemed, canceled, accelerated or paid in full, (d) the earlier of (i) the 30th day following the trustee's receipt of notice of termination from the Bank, or (ii) the date on which the Bank purchases the Bonds pursuant to the mandatory tender of the Bonds that occurs as a result of the termination notice, (e) the earlier of (i) the business day succeeding the conversion of all the Bonds to a rate period other than the daily or weekly, or (ii) the conversion date, provided, that the Bank has honored the drawing in connection with such conversion; (f) the earlier of (i) the business day succeeding the substitution date or (ii) the substitution date, provided, that the Bank has honored the drawing in connection with such substitution.

METHODOLOGY

The principal methodology used in this rating was Variable Rate Instruments Supported by Conditional Liquidity Facilities published in March 2017. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Susanne Siebel
Lead Analyst
Regional PFG Northeast
Moody's Investors Service, Inc.
7 World Trade Center
250 Greenwich Street
New York 10007
US
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

Christopher Coviello
Additional Contact
Regional PFG Northeast
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

No Related Data.
© 2020 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/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY'S (COLLECTIVELY, "PUBLICATIONS") MAY INCLUDE SUCH  CURRENT OPINIONS. MOODY'S INVESTORS SERVICE 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 INVESTORS SERVICE CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS ("ASSESSMENTS"), AND  OTHER 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. AND/OR ITS AFFILIATES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES  ITS 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.

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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.

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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 credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit 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.

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