OREANDA-NEWS. On the effective date of Jan. 29, 2016, Fitch Ratings will affirm the short-term rating at 'F1' assigned to the City of New York general obligation bonds (adjustable rate bonds), $75,000,000 fiscal 2008, series J, subseries J-3 (J-3 bonds) and $150,000,000 fiscal 2010, series G, subseries G-4 (G-4 bonds).

The short-term rating action is in connection with the amendment, restatement and extension of the liquidity support provided by Barclays Bank plc (rated 'A/F1') in the form of separate Standby Bond Purchase Agreements (SBPAs) for each subseries of bonds.

KEY RATING DRIVERS
On the effective date, the short-term 'F1' rating will continue to be based on the amended and restated Barclays SBPAs, which have stated expiration dates of March 29, 2019, unless extended or earlier terminated, during the daily and two-day mode for the J-3 bonds and during the daily and weekly modes for the G-4 bonds. The 'AA' long-term rating and Stable Outlook are based on the credit quality of the City of New York. (For more information on the long-term rating, see the press release dated July 24, 2015, available on Fitch's website at www.fitchratings.com.)

The amended and restated SBPAs provide 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 J-3 bonds during the daily and two-day mode and for tendered G-4 bonds during the daily and weekly rate modes in the event that the proceeds of a remarketing of the relevant series of bonds are insufficient to pay the purchase price following an optional or mandatory tender. Each amended and restated SBPA will expire on March 29, 2019, the stated expiration date, unless such date is extended; 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 bond obligor which result in an automatic and immediate termination. In addition, the SBPA for the J-3 bonds will expire upon conversion of those bonds to a mode other than daily or two-day and the SBPA for the G-4 bonds will expire upon conversion of those bonds to a mode other than daily or weekly, unless the Bank agrees to cover such mode. The remarketing agent for both subseries of bonds is Barclays Capital Inc.

RATING SENSITIVITIES
The short-term rating reflects the short-term rating that Fitch maintains on the bank providing liquidity support, and will be adjusted upward or downward in conjunction with the short-term rating of the bank and, in some cases, the long-term rating of the bond obligor. The long-term rating is exclusively tied to the creditworthiness of the bond obligor and will reflect all changes to that rating.