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CHICAGO--([ BUSINESS WIRE ])--Fitch Ratings has affirmed the following ratings on the state revolving funds (SRF) revenue bonds issued by the New York State Environmental Facilities Corporation (EFC):

--$559.15 million outstanding 2010 master financing indenture (MFI) SRF revenue bonds, at 'AAA';

--SRF extendable municipal commercial paper (EMCP) notes (Series 1) program in an aggregate authorized amount not to exceed $200 million, at 'F1+'.

The Rating Outlook is Stable.

In accordance with Fitch's newly released 'State Revolving Fund and Leveraged Municipal Loan Pool Criteria', Fitch's cash flow modeling demonstrates that the program can continue to pay bond debt service even if loan defaults were in excess of Fitch's 'AAA' liability default hurdle, as produced using Fitch's Portfolio Stress Calculator (PSC). Liability default hurdles derived by the PSC are calculated based on overall pool credit quality as measured by the rating of underlying borrowers, size, loan term, and concentration.

For more information, see 'Fitch Rates New York State Environmental Facilities Corp's $103MM SRF Bonds 'AAA',' dated 16 May 2012.

The 'F1+' rating on the EMCP notes reflects the strong credit quality of the 2010 MFI SRF program as well as the solid EMCP structure and ample available liquidity to redeem the EMCP, if necessary.

The EMCP notes program (in an amount not to exceed $200 million) will have original maturities from one to 90 days from the original issue date of each note. However, EFC reserves the right to extend the maturity up to 270 days from and including the original issue date. If the notes are extended to the extended maturity date, the interest rate would be reset based on a formula tied to the SIFMA and the program's EMCP rating.

EMCP notes are expected to be repaid by the proceeds of bonds issued through EFC's 2010 MFI or new EMCP notes. However, EFC has ample liquid resources available within its short-term equity account (approximately $613 million as of March 31, 2012) to repay the EMCP notes, if necessary. EFC will transfer to the trustee sufficient funds from pledged sources on or before each date when EMCP notes are due.

Additional information is available at '[ www.fitchratings.com ]'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Revenue-Supported Rating Criteria' (June 12, 2012);

--'State Revolving Fund and Leveraged Municipal Loan Pool Criteria' (May 21, 2012);

--'Rating Guidelines for State Credit Enhancement Programs' (June 19, 2012);

--'Counterparty Criteria for Structured Finance Transactions' (May 30, 2012);

--'Rating U.S. Municipal Short-Term Debt' (Dec. 8, 2011).

Applicable Criteria and Related Research:

Revenue-Supported Rating Criteria

[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=681015 ]

State Revolving Fund and Leveraged Municipal Loan Pool Criteria

[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=677858 ]

Rating Guidelines for State Credit Enhancement Programs

[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=681239 ]

Counterparty Criteria for Structured Finance Transactions

[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=678938 ]

Rating U.S. Municipal Short-Term Debt

[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=659234 ]

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