Rating Action: Moody’s assigns Aa3/VMIG 1 LOC-backed ratings to Business Finance Authority of the State of New Hampshire Solid Waste Disposal Revenue Bonds (Lonza Biologics Inc. Project) Series 2003, 2005, 2010 (Non-AMT) and 2017 (AMT)Global Credit Research – 20 Dec 2021New York, December 20, 2021 — Moody’s Investors Service (Moody’s) has assigned Aa3/VMIG 1 letter of credit backed ratings to Business Finance Authority of the State of New Hampshire Solid Waste Disposal Revenue Bonds (Lonza Biologics Inc. Project) Series 2003, Series 2005, Series 2010 (Non-AMT) and Series 2017 (AMT) (collectively the Bonds). Landesbank Hessen-Thueringen GZ (the Bank) provides a separate letter of credit (LOC) to support each Series of Bonds.RATINGS RATIONALEThe ratings are based upon (i) the direct pay LOCs provided by the Bank; (ii) the structure and legal protections of the transactions, which provide for timely payment of debt service to the bondholders; and (iii) Moody’s evaluation of the credit quality of the Bank. Moody’s current long-term and short-term Counterparty Risk (CR) Assessments of Landesbank Hessen-Thueringen GZ are Aa3(cr) and P-1(cr), respectively.FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS** Long-term: Moody’s upgrades the long-term CR Assessment of the Bank.** Short-term: Not applicable.FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS** Long-term: Moody’s downgrades the long-term CR Assessment of the Bank.** Short-term: Moody’s downgrades the short-term CR Assessment of the Bank.Each LOC is sized to cover the current principal amount outstanding for the applicable Series of Bonds plus one hundred six (106), or one hundred nine (109) (for Series 2017), days of interest, at 15% (for Series 2003 and 2005), or at 8% (for Series 2010 and 2017) which in each case is the maximum rate applicable to respective Series of Bonds. Each LOC provides sufficient coverage while the Bonds are in the weekly rate mode.The trustee is instructed to draw on each LOC on the business day prior to any principal or interest payment date in order to receive funds on such payment date. The trustee is also instructed to draw on each LOC on each purchase date, for purchase price to the extent remarketing proceeds are insufficient. Tendered Bonds purchased by the Bank are held by the trustee and will not be released until the trustee has received confirmation from the Bank stating that the applicable LOC has been reinstated in the amount of the purchase price drawn for such Bonds.Prior to the expiration, termination or substitution of the LOCs, the Bonds are subject to payment funded with a draw on the LOCs. The payment will occur upon the mandatory tender or acceleration of such Bonds, as provided below:** Expiration: mandatory tender two business days prior to the expiration date of each LOC.** Substitution: mandatory tender two business days prior to substitution date. Each LOC terminates following the Bank’s receipt of notice of cancellation from the trustee following the trustee’s acceptance of a substitute letter of credit.** Interest rate conversion: mandatory tender upon conversion of the interest rate to the fixed rate. Each LOC terminates following the Bank’s receipt of notice of cancellation from the trustee following conversion of the applicable series of Bonds to the fixed rate.** Event of default under the reimbursement agreement: Upon an event of default under the reimbursement agreement, the Bank may, at its option, send written notice to the trustee that such event has occurred with direction to accelerate the Bonds. Upon receipt of such notice the trustee shall declare the Bonds immediately due and payable and interest shall cease to accrue upon such declaration. The LOCs terminate on the 10th day, or 15th day in the case of the Series 2017 LOC, following the trustee’s receipt of notice of an event of default under the reimbursement agreement.Draws for interest made under the LOCs shall be automatically reinstated on the eleventh calendar day following the honoring of such interest drawing unless the trustee has received notice by the close of business on the tenth calendar day that an event of default under the reimbursement agreement has occurred and as a result the amount of such interest drawing shall not be reinstated. Upon receipt of notice the trustee shall declare the Bonds immediately due and payable and interest shall cease to accrue on such declaration. The LOCs terminate on the 10th day, or 15th day in the case of the Series 2017 LOC, following the trustee’s receipt of notice of an event of default under the reimbursement agreement.Bondholders may optionally tender Bonds in the weekly rate mode on any business day by delivering written notice to the trustee at least seven (7) calendar days prior to the purchase date. Bonds in the weekly mode pay interest on the first calendar day of each January, April, July and October for the Series 2003 Bonds and the first calendar day of each March, June, September and December for the Series 2005, 2010 and 2017 Bonds. The trust indenture permits conversion of interest on each Series of Bonds in whole to the fixed rate mode. Such Bonds would be subject to mandatory tender on such interest rate conversion date. Moody’s current ratings only apply while the Bonds are in the weekly rate mode.The principal methodology used in these ratings was Rating Transactions Based on the Credit Substitution Approach: Letter of Credit-backed, Insured and Guaranteed Debts published in May 2017 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1068154. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.REGULATORY DISCLOSURESFor further specification of Moody’s key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody’s Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody’s rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider’s credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.Moody’s general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288235.Please see www.moodys.com for any updates on changes to the
lead rating analyst and to the Moody’s legal entity that has issued the rating.Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating. Michael J. Loughlin Vice President – Senior Analyst Public Finance Group Moody’s Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Joann Hempel VP – Senior Credit Officer Public Finance Group JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody’s Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 © 2021 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). 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