Fitch Rates Chicago O'Hare Airport CP Notes 'F1'
KEY RATING DRIVERS
The 'F1' rating on the Series A-1, A-2 and A-3 notes is based on the support of an irrevocable direct-pay letter of credit (LOC) provided by Bank of America N. A.,(BANA; rated 'A+/F1', Stable Outlook). The 'F1' rating on the Series B-1, B-2 and B-3 notes is based on the support of a LOC provided by Bank of Tokyo-Mitsubishi UFJ, Ltd., acting through its New York Branch, (BTMU; rated 'A/F1', Negative Outlook). The 'F1' rating assigned to the Series C-1, C-2 and C-3 notes is based on the support of a LOC provided by Barclays Bank PLC (Barclays, rated 'A/F1', Stable Outlook). Each of the LOCs has a stated expiration date of Sept. 27, 2019 unless extended or earlier terminated. Each LOC provides coverage for the principal amount of notes and interest due on the maturity dates of the notes.
The Bank of New York Mellon acting as Issuing and Paying Agent (IPA) for the notes is directed to request an advance under the related LOC to pay principal and interest on maturing notes. The BANA LOC provides sufficient coverage for a maximum of $180,000,000 principal amount of the notes plus 120 days of interest calculated at 12% based on a 365 day year. The Barclays LOC provides sufficient coverage for a maximum of $120,000,000 principal amount of notes plus 120 days of interest calculated at 12% based on a 365 day year and the BTMU LOC provides sufficient coverage for a maximum $120,000,000 principal amount of notes plus 120 days of interest calculated at 12% based on a 365 day year.
All notes will be issued at par, with interest due at maturity. Following the occurrence of an event of default under a related LOC, the effected bank may direct the IPA to immediately stop the issuance of any additional notes. In such an event the related LOC will expire after all the notes supported by that LOC mature and have been paid from funds drawn on that LOC. In addition, the effected bank may issue a final drawing notice directing the IPA to draw on its LOC for the principal of and interest due on all notes outstanding in which case the LOC will expire on the earlier of (A) the 15th calendar day (or if such date is not a Business Day, the immediately succeeding Business Day) after the date on which the IPA received the final drawing notice and (B) the date on which the Drawing resulting from the delivery of the final drawing notice is honored. The dealers for the notes are: Merrill Lynch, Pierce, Fenner & Smith, Inc., Barclays Capital Inc., Loop Capital Markets, LLC, MUFG Securities Americas Inc. and Ramirez & Co. Inc.
The rating is exclusively tied to the short-term rating that Fitch maintains on the bank providing the LOC and will reflect all changes to that rating.