Approximately $114 million in debt affected
New York, September 07, 2012 --
Moody's Investors Service has confirmed the Aaa (sf) rating on the following
stand-alone bond programs:
1. Confirmed City of Chicago, IL, Collateralized Single
Family Mortgage Revenue Bonds, Series 2006G
2. Confirmed City of Chicago, IL, Collateralized Single
Family Mortgage Revenue Bonds, Series 2006I
3. Confirmed City of Chicago, IL, Collateralized Single
Family Mortgage Revenue Bonds, Series 2006C
4. Confirmed City of Chicago, IL, Collateralized Single
Family Mortgage Revenue Bonds, Series 2006K
5. Confirmed City of Chicago, IL, Collateralized Single
Family Mortgage Revenue Bonds, Series 2007A
6. Confirmed City of Chicago, IL, Collateralized Single
Family Mortgage Revenue Bonds, Series 2007C
7. Confirmed City of Chicago, IL, Collateralized Single
Family Mortgage Revenue Bonds, Series 2007E
8. Confirmed City of Chicago, IL, Collateralized Single
Family Mortgage Revenue Bonds, Series 2007G
9. Confirmed City of Chicago, IL, Collateralized Single
Family Mortgage Revenue Bonds, Series 2007-2A
10. Confirmed City of Chicago, IL, Collateralized Single
Family Mortgage Revenue Bonds, Series 2007-2C
11. Confirmed City of Chicago, IL, Collateralized Single
Family Mortgage Revenue Bonds, Series 2007-2G
12. Confirmed City of Chicago, IL, Collateralized Single
Family Mortgage Revenue Bonds, Series 2007-2I
13. Confirmed City of Chicago, IL, Collateralized Single
Family Mortgage Revenue Bonds, Series 2007-2K
14. Confirmed City of Chicago, IL, Collateralized Single
Family Mortgage Revenue Bonds, Series 2007-2E
SUMMARY RATIONALE
The applicable bond programs were placed under review for downgrade on
June 25, 2012 following the downgrades of Natixis Funding Corporation
("Natixis") and Credit Agricole Corporate ("Credit Agricole")
from Aa3/P-1 to A2/P-1. The above-referenced
issues were exposed to Natixis and Credit Agricole Guaranteed Investment
Contracts (GICs) which provided a fixed rate of return on invested cash.
The issuer terminated the GICs. Cash flows were run at 0%
reinvestment rates under several prepayment scenarios. Cash flow
analysis demonstrates the transaction will maintain sufficient parity
and revenue balances consistent with Aaa(sf) ratings.
WHAT COULD CHANGE THE RATING UP:
- Not applicable
WHAT COULD CHANGE THE RATING DOWN:
- Declining asset-to-debt ratio ("parity")
- Projected cash flow insufficiencies
- Downgrade of the US government (Aaa negative)
The principal methodology used in this rating was Strength in Structure:
Moody's Approach to Rating Single-Family Housing Bonds Secured
by Mortgage-Backed Securities published in October 1998.
Please see the Credit Policy page on www.moodys.com for
a copy of this methodology.
REGULATORY DISCLOSURES
The Global Scale Credit Ratings on this press release that are issued
by one of Moody's affiliates outside the EU are endorsed by Moody's
Investors Service Ltd., One Canada Square, Canary Wharf,
London E 14 5FA, UK, in accordance with Art.4 paragraph
3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies.
Further information on the EU endorsement status and on the Moody's
office that has issued a particular Credit Rating is available on www.moodys.com.
For ratings issued on a program, series or category/class of debt,
this announcement provides relevant regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt 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 relevant regulatory disclosures in relation
to the rating action on the support provider and in relation to each particular
rating action for securities that derive their credit ratings from the
support provider's credit rating. For provisional ratings,
this announcement provides relevant 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.
Information sources used to prepare the rating are the following:
parties involved in the ratings.
Moody's considers the quality of information available on the rated
entity, obligation or credit satisfactory for the purposes of issuing
a rating.
Moody's adopts all necessary measures so that the information it
uses in assigning a 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 Moody's Rating Symbols and Definitions on the Rating
Process page on www.moodys.com for further information on
the meaning of each rating category and the definition of default and
recovery.
Please see ratings tab on the issuer/entity page on www.moodys.com
for the last rating action and the rating history. The date on
which some ratings were first released goes back to a time before Moody's
ratings were fully digitized and accurate data may not be available.
Consequently, Moody's 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 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.
In addition to the information provided below please find on the ratings
tab of the issuer page at www.moodys.com, for each
of the ratings covered, Moody's disclosures on the lead rating
analyst and the Moody's legal entity that has issued each of the
ratings.
Shane Mullin
Associate Analyst
Public Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Ferdinand S. Perrault
Asst Vice President - Analyst
Public Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's confirms the Aaa (sf) ratings on various City of Chicago, IL Collateralized Single Family Mortgage Revenue Bonds; Removes from review from possible downgrade