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tw . Standard L Poor's Ratings Group /r/ Municipal Finance Department ■ 5 I I Bond lnwrance Administration Fee Policy B BM t0 Administration 25 Broadway New York, New York 100041084 Telephone 2121412-0355 STANDARD dt POOR'S RATINGS FEES FOR INSURED ISSUES and ASSIGNMENT OF INSURER'S CLAIMS - PAYING RATINGS TO INSURED ISSUES Standard do Poor's Ratings Group currently rates the insurance claims paying ability of Financial Guaranty Insurance Company (FGIC) "AAA" for long-term obligations, and only after specific review by S&P, OSP- I+"for short-term obligations. Accordingly, obligations insured by FGIC will receive the appropriate S&P rating. Prior to assigning a rating to an insured obligation, S&P verifies that FGIC's insurance policy for the issue(s) to be insured guarantees full and timely payment of aA principal and interest, in full and when due, and is permanent and unconditional for the full life and maturity of the insured obligation(s). S&P also receives preliminary information from FGIC at the time of a commitment of insurance. An initial review of the security -type is made at the time S&P receives policy information. Upon verification of these conditions S&P will assign the "AAA" or "SP -1+" sating to the insured obligation(s). written confirmation of that action will be provided to FGIC and made available prior to or by the date of the closing. The issue and its appropriate "AAA" or "SP -1+" rating will then be included in all S&P's published ratings directories and ruing verification services. STANDARD do POOR'S REQUIREMENTS FOR INFORMATION FROM ISSUERS In order to assess continually the "AAA" or "SP -1+" claims paying ability of FGIC, S&P reviews the credit quality of selected insured obligations periodically. If the insured obligation is on a parity with or it's repayment source is closely related to, outstanding debt which is rated by S&P on an uninsured basis. S&P must review the ratings on the outstanding uninsured debt prior to the closing date of the new insured obligations. S&P requires that the issuer provide the same documentation normally required for the rating of any new issue, e.g., preliminary official statement, legal documents, financial statements, etc.