OREANDA-NEWS. Fitch Ratings has assigned a rating of 'F1' to the $350,000,000 City and County of Honolulu General Obligation Commercial Paper Notes, consisting of $200,000,000 sub-issue B-1 and $150,000,000 sub-issue B-2(notes).

KEY RATING DRIVERS:
The rating is based on the support provided by an irrevocable transferable direct-pay letter of credit (LOC) issued by Sumitomo Mitsui Banking Corporation, (Sumitomo; rated 'A/F1', Stable Outlook) acting through its New York Branch which has a stated expiration date of Dec. 22, 2020, unless extended or earlier terminated. The Sumitomo LOC provides coverage for the principal amount of notes and interest due on the maturity date of the notes.

U.S. Bank, N.A., as the Issuing and Paying Agent (IPA) for the notes is directed to request an advance under the LOC to pay principal and interest on maturing notes. The LOC provides sufficient coverage for the principal amount of notes issued and 270 days of interest coverage 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 the LOC and Reimbursement Agreement, Sumitomo may direct the IPA to immediately stop the issuance of any additional notes and notify the IPA that the stated amount of the LOC shall be permanently reduced to the principal amount of notes then outstanding and interest thereon, and shall be further permanently reduced following the maturity of any such notes. Sumitomo may also issue a final drawing notice directing the IPA to draw on its LOC for all notes outstanding plus accrued interest. The proceeds of the final drawing will be held by the IPA and disbursed as notes mature. Merrill Lynch, Pierce, Fenner & Smith Incorporated is the dealer for the sub-issue B-
1 notes. Citigroup Global Markets Inc. is the dealer for the sub-issue B-2 notes.

RATING SENSITIVITIES
The short-term 'F1'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.