Fitch Ratings has assigned an 'F1+' Short-Term rating to the $75,000,000 New York City Transitional Finance Authority future tax secured tax-exempt subordinate bonds (adjustable rate bonds) fiscal 2018 Subseries C-7.

KEY RATING DRIVERS

The Short-Term 'F1+' rating is based on the liquidity support provided by TD Bank, N.A. (TD Bank, rated AA-/F1+/Stable) in the form of a Standby Bond Purchase Agreement (SBPA). For information on the long-term rating assigned to the bonds see the press release dated May 10, 2024 available on Fitch's website at www.fitchratings.com.

The SBPA provides for the payment of the principal component of purchase price plus an amount equal to 35 days of interest calculated at a maximum rate of 9%, based on a year of 365 days for tendered bonds during the daily, two-day and weekly rate modes in the event that the proceeds of a remarketing of the bonds are insufficient to pay the purchase price following an optional or mandatory tender.

The SBPA will expire on May 21, 2027, the stated expiration date of the SBPA, unless such date is extended, upon conversion to a mode other than the daily, weekly or two-day rate mode; or upon the occurrence of certain events of default that result in a mandatory tender or other events of default related to the credit of the bond obligor which result in an automatic and immediate termination. The remarketing agent for the bonds is TD Securities (USA) LLC. The bonds are expected to be available for delivery on or about May 23, 2024.

The bonds will be reoffered in the daily rate mode, but may be converted to a weekly or two-day, index, stepped coupon, commercial paper, auction, term or fixed rate mode. While bonds bear interest in the daily, weekly or two-day rate modes, interest is paid on the first business day of each month, commencing June 3, 2024. Holders of bonds bearing interest in the daily rate mode may tender their bonds for purchase with the requisite prior notice.

The Tender Agent is obligated to make timely draws on the SBPA to pay purchase price in the event of insufficient remarketing proceeds, and in connection with the expiration or termination of the SBPA, except in the case of the credit-related events permitting immediate termination or suspension of the SBPA.

Funds drawn under the SBPA are held uninvested, and are free from any lien prior to that of the bondholders. The bonds are subject to mandatory tender: (1) upon conversion of the interest rate to a mode other than the weekly, daily or two-day rate mode; (2) upon expiration, substitution (unless rating confirmation is received) or termination of the SBPA; and (3) following the receipt of written notice from the bank of an event of default under the SBPA, directing such mandatory tender. Optional and mandatory redemption provisions also apply to the bonds.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to negative rating action/downgrade:

The Short-Term rating assigned to the bonds will be adjusted downward in conjunction with the Short-Term rating of the bank providing the liquidity support and, in some cases the Long-Term rating of the issuer.

Factors that could, individually or collectively, lead to positive rating action/upgrade:

The Short-Term rating assigned to the bonds is currently the highest Short-Term rating and cannot be upgraded.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

The short-term rating is linked to the short-term rating of the bank providing the liquidity support to the bonds and the long-term rating of the bond obligor.

VIEW ADDITIONAL RATING DETAILS

Additional information is available on www.fitchratings.com

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