Fitch Affirms State of Hawaii DBEDT Green Energy Market Securitization Bonds 2014 Series A

News Release from Fitch Ratings, September 22, 2016

Fitch Ratings-Chicago-22 September 2016: Fitch Ratings has affirmed both outstanding classes of the State of Hawaii Department of Business, Economic Development, and Tourism Green Energy Market Securitization Bonds 2014 Series A, as follows:

--Class A-1 notes at 'AAAsf'; Outlook Stable;

--Class A-2 notes at 'AAAsf'; Outlook Stable.

KEY RATING DRIVERS

The transaction is performing within expectations, with levels of outstanding principal in-line with their targeted amortization schedules and no shortfalls in the capital subaccount. Additionally, the true-up mechanism continues to provide adequate credit support for all outstanding classes.

RATING SENSITIVITIES

As part of its initial rating sensitivity, Fitch conducted a break the bond case which provides an alternative means by which to measure the potential effects of rapid, significant declines in customer count while capping the residential green infrastructure fee (GIF) at 20% of the total residential customer bill. This analysis determines the maximum level of customer decline that would cause a default in required payments on the securitization or cause the GIF to exceed 20% of the total residual customer bill. Despite this severe decline, due to the true-up mechanism, GIFs are able to pay all debt service by the legal final maturity date.

For further detail on the rating sensitivity analysis for Utility Tariff Bonds, please refer to Fitch's criteria titled 'Rating Criteria for U.S. Utility Tariff Bonds' available at 'www.fitchratings.com'.

Background: How GEMS Will Drive Your Electric Bill Up  "As homeowners default, the “true-up mechanism” allows your electric bill to be increased to pay for the deadbeats.  That is why the charges are being added utility bills instead of property tax bills."