Fitch to Confirm the S-T 'F1' Rtg on Gainesville, FL VR Utilities System Rev Bonds 2012 Ser B

On the effective date of Feb. 2, 2015, Fitch Ratings will confirm the short-term 'F1' rating assigned to the $100,470,000 City of Gainesville, Florida (the City) Variable Rate Utilities System Revenue Bonds 2012 series B. The short-term rating action is in connection with: (i) the substitution of the liquidity support provided by JPMorgan Chase Bank, N.A. (rated 'A+/F1'; Stable Outlook by Fitch) in the form of a Standby Bond Purchase Agreement (SBPA), with a Standby Letter of Credit (liquidity facility) to be issued by Sumitomo Mitsui Banking Corporation (SMBC, rated 'A-/F1'; Stable Outlook); and (ii) the mandatory tender of the bonds, which will occur on Feb. 2, 2015.

KEY RATING DRIVERS

On the effective date, the short-term 'F1' rating will be based on the liquidity support provided by SMBC in the form of a Standby Letter of Credit. The long-term 'AA-'; Stable Outlook rating continues to be based on the rating assigned to the City of Gainesville, Florida utilities system revenue bonds. The Rating Outlook is Stable for the long-term rating. For more information on the long-term rating, see the press release 'Fitch Rates Gainesville Regional Utilities Bonds (FL) 'AA-' & Affirms CP at 'F1+'; Outlook Stable' dated Dec. 3, 2014 available on Fitch's website at www.fitchratings.com.

The substitute liquidity facility provides for the payment of the principal component of purchase price plus an amount equal to 36 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 (or the daily rate mode provided that the City receives consent from SMBC) 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 liquidity facility will expire on Jan. 12, 2018, the stated expiration date, unless such date is extended; upon conversion to a non-covered interest rate mode; 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. The short-term 'F1' rating will expire on the expiration or prior termination of the substitute liquidity facility. A mandatory tender of the bonds is scheduled to occur on the liquidity facility substitution date. The bonds are currently in the daily rate mode but will be remarketed in the weekly rate mode on the substitution date. The remarketing agent for the bonds continues to be J.P. Morgan Securities LLC.

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 bonds. The long-term rating is exclusively tied to the creditworthiness of the bonds and will reflect all changes to that rating.

Additional information is available at www.fitchratings.com.

Applicable Criteria and Related Research:

--'U.S. Municipal Structured Finance Criteria' (Feb. 24, 2014);

--'Rating Guidelines for Variable-Rate Demand Obligations and Commercial Paper Issued with External Liquidity Support' (Jan. 22, 2015).

Applicable Criteria and Related Research:

U.S. Municipal Structured Finance Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=736618

Rating Guidelines for Variable-Rate Demand Obligations and Commercial Paper Issued with External Liquidity Support

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=856189

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Contacts:

Fitch Ratings
Primary Analyst
Kasia Reed
Analytical Consultant
+1 212-908-0500
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Trudy Zibit
Managing Director
+1 212-908-0689
or
Committee Chairperson
Linda Friedman
Senior Director
+1 212-908-0727
or
Media Relations:
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com

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