Fitch Rates Sacramento Transportation Auth, CA, Sales Tax Rev Bonds, Series 2015A 'F1'

Fitch Ratings assigns an 'F1' rating to the $106,100,000 Sacramento Transportation Authority measure A sales tax revenue refunding bonds, series 2015A (limited tax bonds).

KEY RATING DRIVERS

The short-term 'F1' rating is based on the liquidity support provided by Mizuho Bank, LTD, (rated 'A-/F1', Stable Outlook), in the form of a Standby Bond Purchase Agreement (SBPA).

The SBPA provides for the payment of the principal component of purchase price plus an amount equal to 34 days of interest calculated at a maximum rate of 12%, based on a year of 365 days for tendered bonds during the daily and weekly rate modes 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 SBPA will expire on March 12, 2018, the stated expiration date, unless such date is extended; upon conversion to a commercial paper, indexed, term or fixed 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 bond obligor which result in an automatic and immediate termination. The short-term 'F1' rating will expire on the expiration or prior termination of the SBPA. The remarketing agent for the bonds is JPMorgan Securities LLC. The bonds are expected to be delivered on or about March 12, 2015.

The bonds will be issued in the weekly rate mode, but may be converted to a daily, commercial paper, indexed, term or fixed rate. While bonds bear interest in the weekly or daily rate modes, interest is paid on the first business day of each month, commencing April, 1, 2015. Holders of bonds bearing interest in the weekly or daily rate mode may tender their bonds for purchase with the requisite prior notice. The trustee is obligated to make timely draws on the SBPA to pay purchase price in the event of insufficient remarketing proceeds, and in connection with the expiration or termination of the SBPA, except in the case of the credit-related events permitting immediate termination or suspension of the SBPA.

Funds drawn under the SBPA are held uninvested, and are free from any lien prior to that of the bondholders. The bonds are subject to mandatory tender: (1) upon conversion of the interest rate; (2) upon substitution, unless rating confirmation is received (3) upon expiration or termination of the SBPA; and (4) following the receipt of written notice from the bank of an event of default under the SBPA, directing such mandatory tender. Optional and mandatory redemption provisions also apply to the bonds.

A long-term 'AA+', Stable Outlook rating was assigned to the Sacramento Transportation Authority, California, sales tax revenue bonds. For more information on the long-term rating, see the press release 'Fitch Rates Sacramento Transportation Authority, CA's $106.1MM Sales Tax Revs, dated Feb. 27, 2015, available on Fitch's website at www.fitchratings.com.

Bond proceeds will be used to refund outstanding sales tax revenue bonds, series 2009B.

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. 23, 2015;

--'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=862222

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

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=980541

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