S&P: The LaVonne V. Johnson Irrevocable Life Insurance Trust $24.175 Million Notes Series 2016 Assigned Rating
The 'AA+/A-1+' rating reflects the higher of our ratings on Federal Home Loan Bank of Atlanta (FHLB Atlanta; 'AA+/A-1+'), the confirming letter of credit (CLOC) provider, and Stonegate Bank ('NR'), the fronting LOC (FLOC) provider, during the weekly interest rate mode (the rated mode).
The 'AA+' long-term component of our rating reflects the higher of our long-term issuer credit ratings on Stonegate Bank and FHLB Atlanta and addresses our expectation of full and timely interest and principal payments when the noteholders have not exercised the put option. The 'A-1+' short-term component of our rating reflects the higher of our short-term issuer credit ratings on Stonegate Bank and FHLB Atlanta and addresses our expectation of full and timely interest and principal payments when the noteholders have exercised the put option. Although each bank fully supports the notes' repayment when they are in the rated mode, we did not apply our joint-support methodology because FHLB Atlanta and Stonegate Bank are too highly correlated, and we do not rate the FLOC provider (for more information on our joint-support methodology, see "Methodology And Assumptions For Rating Jointly Supported Financial Obligations," published May 23, 2016).
In rating this transaction, we reviewed the credit, liquidity, legal, operational, and structural matters that we believed were relevant to our analysis, as outlined in our criteria.