S&P: FMSbonds Inc. Tender-Option Bond Series 2015-XF0141 Floater And Residual Ratings Raised To 'AA+/A-1' And 'AA+'
This action follows S&P Global Ratings' rating action on July 26, 2016, on the underlying bonds. (Please see the article, titled "Tennessee State School Bond Authority Second Program Debt Rating Raised To 'AA+' Based On Criteria," published July 27, 2016, on RatingsDirect.)
The long-term component of the rating on the floaters and the long-term rating on the residuals reflect the ratings on the underlying bonds, reflecting S&P Global Ratings' opinion of the likelihood bondholders will receive interest and principal payments when due if they do not exercise their put option.
The short-term component of the rating on the floaters is based solely on the short-term rating on JPMorgan Chase Bank N. A., reflecting S&P Global Ratings' opinion of the likelihood bondholders will receive interest and principal payments if they exercise their put option.
Changes to the ratings on these bonds could result from, among other things, changes to the ratings on the underlying bonds or support provider, expiration or termination of the letter of credit agreements, or amendments to the transactions' terms.