Fitch Affirms Colorado Springs VRD Utilities Sys Revs, Series 2007B S-T Rating at 'F1'
KEY RATING DRIVERS
The short-term 'F1' rating is based on the liquidity support provided by SMBC, in the form of a substitute SLOC, which has a stated expiration date of Sept. 14, 2021, unless extended or earlier terminated, during the weekly interest rate mode only. Colorado Springs Utilities' 'AA' long-term rating reflects the diverse combined utility revenue base, with continued solid financial performance and competitive retail rates, despite a considerable capital spending program. The Rating Outlook is Stable. For more information on the long-term rating, see the press release dated Aug. 28, 2015, available on Fitch's website at www. fitchratings. com.
The substitute SLOC provides for the payment of the principal component of purchase price plus an amount equal to 35 days of interest calculated at a maximum rate of 12%, based on a year of 365 days for tendered bonds during the weekly rate mode in the event that the proceeds of a remarketing of the bonds are insufficient to pay the purchase price following an optional or mandatory tender. The substitute SLOC will expire on Sept. 14, 2021, the stated expiration date, unless such date is extended; upon conversion to any mode other than weekly; or upon the occurrence of certain events of default which result in a mandatory tender or other events of default related to the credit of the bonds which result in an automatic and immediate termination. A mandatory tender of the bonds has occurred. The remarketing agent for the bonds is Morgan Stanley & Co. LLC.