OREANDA-NEWS. On the effective date of June 16, 2016, Fitch Ratings will downgrade the short-term rating to 'F1' from 'F1+' assigned to the Town of Hillsborough, CA's certificates of participation (COPs):

--$3,500,000 2000 series A and $6,500,000 2000 series B (Refunding and Water and Sewer Systems Project);

--$10,700,000 (Water and Sewer System Projects) 2003 series A;

--$9,630,000 (Water and Sewer System Projects) 2006 series A.

The short-term rating action is in connection with: (i) the substitution of the liquidity support currently provided by JPMorgan Chase Bank, N. A. (rated 'AA-/F1+', Stable Outlook) in the form of a Standby Purchase Agreement (SPA), with a substitute SPA to be issued by Bank of the West (BOTW, rated 'A/F1', Stable Outlook); and (ii) the mandatory tender of the bonds, which will occur on June 16, 2016.

KEY RATING DRIVERS:

On the effective date, the short-term 'F1' rating will be based on the liquidity support provided by BOTW, in the form of a substitute SPA, which has a stated expiration date of July 1, 2019, unless extended or earlier terminated, during the daily and weekly interest rate modes only.