Fitch Rates NYCTL $52,264,000 Tax Lien Collateralized Bonds, Series 2008-A

Fitch Rates NYCTL $52,264,000 Tax Lien Collateralized Bonds, Series 2008-ANEW YORKNY-FITCH-RATINGS/NYCTL

NEW YORK--(BUSINESS WIRE)--

NYCTL 2008-A Trust tax lien collateralized bonds, series 2008-A, which closed June 26, 2008, are rated by Fitch Ratings as follows:

--$52,264,000 class A are rated 'AAA' (144A).

The bonds are secured by liens on real property resulting from unpaid real property taxes, assessments, sewer rents, sewer surcharges, water rents and other charges (Tax Liens). The tax lien were imposed by The City of New York on properties located in New York City.

The 'AAA' rating on the class A bonds reflects the 33.65% credit enhancement provided by overcollateralization (OC). Additional support for the bonds is available from an interest reserve fund initially equal to three months interest on the original principal amount of the bonds until such amount is equal to six months interest on the outstanding bonds, and thereafter remains equal to six months interest payable on the bonds. The interest reserve fund is designed to help protect the bondholders from potential fluctuations in cash flow from the underlying collateral that could impair their receipt of timely interest. A $4,000,000 working capital reserve fund is also in place to cover lien administration expenses and pay the servicers their base fee. In the event that monies in either the interest reserve fund or the working capital reserve fund are insufficient to meet their required needs, The Bank of New York, as indenture trustee, will advance interest payments (by an amount not to exceed 12.50% of the current outstanding lien balance) and lien administration expenses, provided that the advances are deemed as recoverable by The Bank of New York.

Fitch's ratings on the bonds reflect the quality and nature of the underlying collateral, the credit enhancement provided by OC, the servicing experience and capabilities of Xspand and Mooring Tax Asset Group, LLC and the transaction's financial and legal structures.

The final collateral pool, which will secure the bonds, consists of 4,358 unpaid tax liens, with an initial tax lien principal balance of $78,771,234. The liens sold to the trust have a weighted average lien to property value ratio of 15.03% and a weighted average age of 55.36 months. The boroughs of Brooklyn, Queens, and the Bronx have the largest concentration of unpaid tax liens in the collateral pool with 40.13%, 22.85%, and 17.69% respectively. All unpaid tax liens in the collateral pool are scheduled to accrue interest at a rate of 18% per annum compounded daily.

Stated maturity for the bonds is Jan. 10, 2022. For federal income tax purposes, the bonds will be treated as indebtedness and not as an ownership interest in the collateral or an equity interest in the issuer or in a separate association taxable as a corporation. The bonds will pay principal on a pro-rata basis since tax liens do not qualify as real estate mortgage investment conduit (REMIC) eligible collateral. Principal and interest will be paid on the 10th day of January, April, July and October (assuming each day is a business day) beginning October 2008.