OREANDA-NEWS. On the effective date of Aug. 24, 2015, Fitch Ratings will downgrade the short-term rating for the \\$40,000,000 City of El Paso, Texas water and sewer tax-exempt commercial paper notes, series A to 'F1' from 'F1+'. The rating action is in connection with: (i) the substitution of the revolving credit agreement (RCA) previously provided by JPMorgan Chase Bank, N.A. (rated 'AA-/F1+', Stable Outlook) with a substitute RCA to be issued by Bank of America, N.A. (rated 'A+/F1', Stable Outlook), and (ii) the reoffering of the notes, which will occur on Aug. 24, 2015. A maximum of \\$40,000,000 aggregate principal amount of authorized notes may be outstanding at any given time.

KEY RATING DRIVERS:
On the effective date, the rating on the series A notes will be 'F1' based on the support provided by the RCA to be provided by Bank of America, N.A., which has a stated expiration date of Aug. 23, 2018, unless extended or earlier terminated. The Bank of America substitute RCA provides coverage for the principal amount of the notes only. The City of El Paso will be obligated to pay interest upon maturity of all notes. The water and sewer senior and subordinate lien obligations of the City of El Paso are rated 'AA+', Stable Outlook. For more information on the city's long-term ratings, see Fitch's press release dated Aug. 12, 2015, available on Fitch's web site at 'www.fitchratings.com'.

The Bank of New York Mellon Trust Company, N.A. acting as Issuing and Paying Agent (IPA) will continue as the IPA for the notes, and as IPA, is directed to request an advance under the substitute RCA whenever proceeds of the sale of rollover notes are insufficient to pay maturing notes. The substitute RCA provides sufficient coverage for the principal amount of notes and the issuer is obligated to pay interest on the notes.

All notes will be issued at par, with interest due at maturity. Following the occurrence of an event of default under the RCA, Bank of America may direct the IPA to immediately stop the issuance of any additional notes. In such event, the substitute RCA will expire after all the notes supported by such RCA mature and have been paid from funds drawn on the substitute RCA. In addition, the substitute RCA may be terminated by the bank upon the occurrence of specified immediate termination events. The dealer for the notes is Bank of America Merrill Lynch.

RATING SENSITIVITIES

The rating reflects the short-term rating that Fitch maintains on the substitute bank providing liquidity support and will be adjusted upward or downward in conjunction with changes to the short-term rating of the bank and, in some cases, the long-term rating of the issuer.