ข่าวประชาสัมพันธ์เศรษฐกิจ/การเงิน

1320 W. Jefferson LLC Taxable 2020 Series A Bonds Assigned Rating

CHICAGO Sept. 30, 2020--S&P Global Ratings today assigned its 'AA+/A-1+' rating to 1320 W. Jefferson LLC's $31.3 million taxable variable-rate demand student housing revenue bonds 2020 series A due Sept. 1, 2060 (for the Jefferson Flats Apartments project).

The 'AA+/A-1+' rating on the bonds reflects the higher of our ratings on the Federal Home Loan Bank of San Francisco (FHLB SF, 'AA+/A-1+'), the confirming letter of credit (LOC) provider, and East West Bank ('BBB+/A-2'), the fronting LOC provider, during the weekly interest rate mode (the rated mode). The 'AA+/A-1+' rating on the bonds reflects the higher of our ratings on FHLB SF, the CLOC provider, and East West Bank ('BBB+/A-2'), the FLOC provider, during the weekly interest rate mode (the rated mode).

The 'AA+' long-term component of our rating reflects the higher of our long-term issuer credit ratings on FHLB SF ('AA+') and East West Bank ('BBB+/A-2'), and addresses our expectation for full and timely interest and principal payments when the bondholders have not exercised the put option. The 'A-1+' short-term component of our rating reflects the higher of our short-term issuer credit ratings on FHLB SF ('A-1+') and East West Bank ('BBB+/A-2') and addresses our expectation for full and timely interest and principal payments when the bondholders have exercised the put option. Although each bank fully supports the bonds' repayment when they are in the rated mode, we did not apply our joint-support methodology because FHLB SF and East West Bank are too highly correlated (for more information on our joint-support methodology, see "Methodology And Assumptions For Rating Jointly Supported Financial Obligations," published May 23, 2016).

In view of the bonds' structure, changes to our rating on the bonds can result from, among other things, changes to our ratings on the LOC providers or amendments to the transaction's terms. We will maintain a rating on the bonds as long as they are in the rated mode and the LOCs have not expired, been replaced, or been otherwise terminated. If any of these conditions changes, we will likely withdraw the rating on the bonds.