Fitch to Downgrade Port of Portland, OR Intl Airport Rfdg Revs Ser Eighteen Subser 18A&B to 'A/F1'
KEY RATING DRIVERS
On the effective date, the ratings will be based on the support provided by the substitute LOCs issued by ICBC, which have an initial stated expiration date of Aug. 30, 2021, unless such date is extended or earlier terminated, while the bonds bear interest in the daily or weekly interest rate mode.
Pursuant to the substitute LOCs, the bank is obligated to make regularly scheduled payments of principal of and interest on the bonds in addition to payments due upon maturity, acceleration and redemption, as well as purchase price for tendered bonds. The substitute LOCs provides full and sufficient coverage of principal plus an amount equal to 53 days of interest at a maximum rate of 12% based on a year of 365 days and purchase price for tendered bonds, while in the daily or weekly rate modes. The Remarketing Agents for the bonds are Goldman Sachs & Co and JPMorgan.
The ratings are exclusively tied to the short and long-term ratings that Fitch maintains on the bank providing the substitute LOCs and will reflect all changes to that rating.