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Texas Public Finance Authority - Moody's Research Report

MOODY'S AFFIRMS P-1 RATING ASSIGNED TO TPFA CANCER PREVENTION PROJECT COMMERCIAL PAPER NOTES

Posted on: August 19, 2010, 10:34 am

NEW YORK, Aug 19, 2010 -- Moody's Investors Service has affirmed the P-1 rating assigned to the State of Texas' General Obligation Commercial Paper Notes (Cancer Prevention and Research Institute of Texas), Taxable Series A and Tax-Exempt Series B, issued through the Texas Public Finance Authority, in conjunction with the expansion of the liquidity agreement provided by the state comptroller to $450 million. The comptroller provides liquidity facilities to several state agency issuers, and during the past year has expanded its liquidity commitments to provide certain state issuers a lower cost alternative to liquidity facilities provided by external banks. The P-1 rating reflects the liquidity agreement provided by the state comptroller and the likelihood of its termination without payment of the notes. Events that could cause the liquidity agreement to terminate without payment of the notes are directly related to the credit quality of the State of Texas; the state's general obligation rating is Aaa with a stable outlook. For our full discussion of the Texas' credit quality, see our report dated June 11, 2010...

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