OREANDA-NEWS. Fitch Ratings assigns a rating of 'F1+' to the \$200,000,000 Long Island Power Authority, NY (LIPA) electric system general revenue notes series 2015 GR-1, consisting of: GR-1A (Federally Taxable) and GR-1B (Tax-exempt) notes (notes).

KEY RATING DRIVERS:
The 'F1+' rating is based on the support provided by an irrevocable direct-pay letter of credit (LOC) issued by TD Bank N.A. (rated 'AA-/F1+', Outlook Stable). The TD Bank LOC provides coverage for the principal amount of notes and interest due on the maturity date of the notes.

The short-term rating on the notes will expire on the earlier of June 29, 2020, the expiration date of the TD LOC, unless such date is extended, or upon any prior termination of the LOC.

Each series 2015 GR-1 note shall have a maturity date no earlier than 271 days and no later than 275 days from the date of issuance. However, all such notes are subject to redemption on a date selected by LIPA at the time of its issuance (Noticed Redemption Date) at a redemption price equal to the principal amount of such series 2015 GR note, plus accrued and unpaid interest thereon. The Noticed Redemption Date for any series 2015 GR note shall be no earlier than one day and no later than 270 days from the date of issuance of such series 2015 GR note.

The Bank of New York Mellon, acting as Issuing and Paying Agent (IPA) for the notes, is directed to request an advance under the LOC to pay principal and interest on maturing notes or on a Noticed Redemption Date. The TD LOC provides sufficient coverage for the principal amount of notes authorized under the series 2015 GR-1 and 275 days of interest calculated at 10% based on a 360 day year.

Following the occurrence of an event of default under the TD LOC and Reimbursement Agreement, the bank may direct the IPA to immediately stop the issuance of any additional notes. The bank will also notify the IPA that the stated amount of the LOC shall be reduced to an amount equal to the principal amount of notes then outstanding plus interest payable on the notes. The bank has the option of issuing a final drawing notice directing the IPA to draw on its LOC for the principal and interest amount due on all outstanding notes.

Goldman Sachs is the dealer for the notes.

RATING SENSITIVITIES
The short-term 'F1+'rating is exclusively tied to the short-term rating that Fitch maintains on the bank providing the LOC and will reflect all changes to that rating.