OREANDA-NEWS. On the effective date of Aug. 12, 2016, Fitch Ratings will affirm the 'F1+' rating assigned to $125,000,000 University of Massachusetts Building Authority commercial paper notes, series 2013A, consisting of series 2013-A1 (tax-exempt) and 2013A-2 (federally taxable). The rating action is in connection with the substitution of the current letter of credit (LOC) provided by State Street Bank and Trust Company ('AA'/'F1+'/Outlook Stable) with a credit agreement (CA) to be provided by State Street.

KEY RATING DRIVERS:

On the effective date, the rating on the notes will be affirmed at 'F1+' based on the liquidity support provided in the form of a CA to be provided by State Street Bank and Trust Company which has a scheduled expiration date of Aug. 12, 2019, unless extended or earlier terminated. The CA provides coverage for the principal amount of the notes plus 270 days of interest calculated at 12% based on a 365-day year. The rating assigned to the senior revenue obligations of the University of Massachusetts Building Authority is 'AA'/ Outlook Stable.

U. S. Bank, National Association will continue as the Issuing and Paying Agent (IPA) for the notes, and as IPA, is directed to request an advance under the CA whenever proceeds of the sale of rollover notes are insufficient to pay maturing notes. The CA provides sufficient coverage for the principal amount of notes and accrued interest on the notes.

All notes will be issued at par, with interest due at maturity. Following the occurrence of an event of default under the CA, the bank may direct the IPA to immediately stop the issuance of any additional notes. In such event, the CA will expire after all the notes supported by such CA mature and have been paid from funds drawn on the CA. In addition, the CA may be terminated by the bank upon the occurrence of specified immediate termination events. The dealer for the notes is Citigroup Global Markets Inc.

RATING SENSITIVITIES

The rating reflects the short-term rating that Fitch maintains on the substitute bank providing liquidity support and will be adjusted upward or downward in conjunction with changes to the short-term rating of the bank and in some cases, the long-term rating of the issuer.