Fitch to Revise 'F1+' S-T Rating on IFA Lease Appropriation Bonds (Convention Center) Series 2008A-2

On the effective date of Feb. 3, 2014, Fitch Ratings will revise the basis of the 'F1+' short-term rating for the $60,000,000 Indiana Finance Authority -- Lease Appropriation Bonds (Convention Center Expansion Project), Series 2008A-2 (the bonds).

The action on the short-term rating is in connection with the substitution of the Indiana Finance Authority's self-liquidity program, with a standby bond purchase agreement (SBPA) to be issued by BMO Harris Bank N.A. (BMO Harris, rated 'AA-/F1+', Stable Outlook).

KEY RATING DRIVERS:

The current 'F1+' short-term rating is the underlying short-term rating assigned to the Indiana Finance Authority's self-liquidity program by Fitch. On the effective date, the short-term 'F1+' rating will be based solely on the liquidity support provided by the BMO Harris SBPA. The long-term 'AA+', Stable Outlook rating continues to be based on the long-term rating assigned by Fitch to the Indiana Finance Authority's state appropriation bonds. For more information on the long-term rating, see Fitch's press release dated Oct. 19, 2012 entitled 'Fitch Rates Indiana Finance Authority's $61MM State Appropriation Bonds 'AA+'; Outlook Stable', which is available at 'www.fitchratings.com'.

The substitute SBPA provides for the payment of the principal component of purchase price plus an amount equal to 37 days of interest calculated at a maximum rate of 12%, based on a year of 365 days for tendered bonds during the daily 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 substitute SBPA will expire on the earliest of: Feb. 3, 2016, the stated expiration date, unless such date is extended; conversion to a mode other than a daily or weekly rate mode; the occurrence of certain other events of default which result in a mandatory tender; or other termination events related to the credit of the Indiana Finance Authority which result in an automatic and immediate termination. The short-term 'F1+' rating will expire on the expiration or prior termination of the SBPA.

The remarketing agent for the bonds is J.P. Morgan Securities LLC.

RATING SENSITIVITIES:

The short-term rating reflects the short-term rating that Fitch maintains on the bank providing liquidity support and will be adjusted upward or downward in conjunction with the short-term rating of the bank and, in some cases, the long-term rating of the bonds.

Additional information is available at www.fitchratings.com.

Applicable Criteria and Related Research:

--'U.S. Municipal Structured Finance Criteria', Feb. 27, 2013;

--'Rating Guidelines for Variable-Rate Demand Obligations and Commercial Paper Issued with External Liquidity Support', Jan. 27, 2014.

Applicable Criteria and Related Research:

U.S. Municipal Structured Finance Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=701570

Rating Guidelines for Variable-Rate Demand Obligations and Commercial Paper Issued with External Liquidity Support -- Effective Jan. 31, 2013 to Jan. 28, 2014

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=699392

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