This is a correction of a release published August 4, 2020.

It includes rating actions for various issuers that were omitted from the ratings list in the original release.

Following the affirmation of the United States of America's Foreign Currency and Local Currency Issuer Default Ratings at 'AAA'/'F1+' with Negative Outlooks, Fitch Ratings has affirmed the ratings of certain categories of debt directly tied to the creditworthiness of the U.S. or its related entities, and revised the Rating Outlook to Negative.

Categories of debt whose ratings are affected include:

Obligations supported by credit enhancement issued by financial institutions directly linked to the U.S., such as Fannie Mae, Freddie Mac or the Federal Home Loan Banks;

Pre-refunded bonds whose repayments are wholly dependent on 'AAA' rated U.S. government and agency obligations held in escrow;

Municipal housing bonds primarily secured by mortgage-backed securities issued by Ginnie Mae, Fannie Mae and/or Freddie Mac;

United States government-sponsored entities' obligations whose ratings, in Fitch's estimation, reflect a very high likelihood and degree of government support.

KEY RATING DRIVERS

The U.S. enhanced municipal bonds and Tender Option Bond (TOB) ratings addressed in this rating action commentary (RAC) are dependent ratings, being the subject of pre-existing rating dependencies. A list of the U.S. enhanced municipal bond and TOB rating actions can be seen via the 'View ratings in detailed rating actions' link below.

All rating actions announced in this RAC are directly driven by separately announced rating actions on associated enhancement providers, liquidity providers or underlying bonds. The most recent RAC with respect to the credit rating of each associated enhancement provider, liquidity provider or underlying bond referenced herein sets out the key rating drivers, and names and contact details of the relevant primary and secondary analysts and committee chair in relation to the credit ratings of such enhancement providers, liquidity providers or underlying bonds.

The specific pre-existing rating dependency relationship for a given U.S. enhanced municipal bond or TOB rating can be seen by viewing the RAC published at the time the rating dependency was established.

RATING SENSITIVITIES

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

A positive rating action on the associated enhancement providers, liquidity providers or underlying bonds, taking into account the specificities of the existing rating dependencies.

A restructuring of the enhancement existing arrangements (e.g. a change to a higher rated enhancement provider), in which case the affected rating dependency relationship will be reviewed and the ratings may be positivity affected.

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

A negative rating action on the associated enhancement providers, liquidity providers or underlying bonds, taking into account the specificities of the existing rating dependencies.

A restructuring of the enhancement existing arrangements (e.g. the expiry of the enhancement), in which case the affected rating dependency relationship will be reviewed and the ratings may be negatively affected or withdrawn.

Best/Worst Case Rating Scenario

Relevant best and worst case scenarios are included in the RACs for the associated enhancement providers, liquidity providers or underlying bonds.

For more information on Fitch's U.S. sovereign rating actions, please see Fitch Revises United States' Outlook to Negative; Affirms at 'AAA' (dated July 31, 2020); Fitch Affirms Fannie Mae's and Freddie Mac's Ratings at 'AAA'; Outlooks Revised to Negative (dated Aug. 3, 2020); and Fitch Affirms Federal Home Loan Banks of Atlanta and Des Moines at 'AAA'; Outlooks Negative (dated Aug. 3, 2020), available on Fitch's website at www.fitchratings.com.

BEST/WORST CASE RATING SCENARIO

Ratings of Sovereigns, Public Finance and Infrastructure issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of three notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings click here.

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.

VIEW ADDITIONAL RATING DETAILS

Additional information is available on www.fitchratings.com

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