Rating Action: Moody's affirms Aaa/ VMIG 1 LOC-backed ratings of Herman & Kittle Capital, LLC Taxable Variable Rate Demand Revenue Bonds (Canterbury House Apartments Project) Series 2005Global Credit Research - 21 Jan 2022New York, January 21, 2022 -- Moody's Investors Service (Moody's) has affirmed the Aaa/ VMIG 1 LOC-backed ratings of Herman & Kittle Capital, LLC Taxable Variable Rate Demand Revenue Bonds (Canterbury House Apartments Project) Series 2005 (the Bonds). The affirmation is in connection with the issuance of a substitute letter of credit (LOC) provided by The Federal Home Loan Bank of Indianapolis (the Bank) effective February 1, 2022.RATINGS RATIONALEThe rating on the Bonds is based upon (i) the direct-pay LOC provided by the Bank, (ii) the structure and legal protections of the transaction which provide for timely payment of debt service to bondholders, and (iii) Moody's evaluation of the credit quality of the Bank. Moody's current ratings of the Bank are Aaa/ P-1.FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS» Not applicableFACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS» Moody's downgrades the ratings of the Bank.The Bonds will continue to bear interest at a weekly rate which pays interest on the first business day of each month. The trust indenture permits conversion of the Bonds in whole to either a one year, three year, five year, seven year or fixed rate. Upon conversion the Bonds will be subject to mandatory tender. Our rating only applies to Bonds bearing interest in the weekly rate.The LOC is sized for full principal plus forty-five (45) days of interest at the maximum rate applicable to the Bonds (10%) and will provide coverage for Bonds while they bear interest in the weekly rate. The trustee is instructed to draw under the LOC for principal and interest on the business day prior to each interest payment date, redemption date or acceleration date as well as on each purchase date, for purchase price, to the extent remarketing proceeds received are insufficient. Bonds which are purchased by the Bank due to a failed remarketing are held by the trustee and will not be released until the LOC has been reinstated in the amount of the purchase price drawn for such Bonds.Conforming draws for principal and interest presented to the Bank at or before 10:00 a.m., Indianapolis time, on a business day, will be honored by the Bank by 11:00 a.m., Indianapolis time, on the next business day. Conforming draws for purchase price presented to the Bank at or before 11:00 a.m., Indianapolis time, on a business day, will be honored by the Bank by 3:30 p.m., Indianapolis time, on the same business day.Upon mandatory tender, redemption or acceleration the Bonds are subject to payment funded with a draw on the LOC. Prior to the termination or expiration of the LOC the Bonds are subject to mandatory tender, redemption or acceleration as follows.» Expiration of the LOC: Mandatory redemption on the interest payment date preceding the expiration date by at least five days unless by at least 40 days prior to the interest payment date the LOC has been extended or substituted.» Substitution of the LOC: Mandatory tender on the substitution date. The trustee is instructed to draw on the existing LOC and may not submit the LOC for cancellation or termination unless all draws have been honored. Bondholders may elect to retain their Bonds following the mandatory tender provided that such bondholder sends written notice to the trustee acknowledging that the rating on the Bonds may be reduced or withdrawn as a result of such substitution.» Interest rate mode conversion: mandatory tender on each interest rate mode conversion date.» Event of default under the reimbursement agreement: The Bank may send a notice of event of default under the reimbursement agreement directing acceleration of the Bonds. Upon receipt of such notice, the Bonds shall be immediately accelerated and payable on the Designated Accelerated Maturity Date which occurs on a business day no later than four days following such declaration. The LOC terminates 30 days following the trustee's receipt of such notice.Draws made under the LOC for interest shall be automatically reinstated on the same day that such interest draw was honored.While the bonds are in the weekly rate bondholders may, at their option, tender their bonds on any business day with at least seven days prior written notice to the trustee. Bondholders tendering Bonds will receive the purchase price equal to the par amount of the Bonds tendered plus accrued interest to the purchase date.The LOC will expire upon the earliest of: (i) honoring a final draw; (ii) the Expiration Date, February 1, 2027; (iii) upon receipt of notice from the trustee stating there are no bonds outstanding or that an alternate LOC has been accepted; or (iv) 30 days following the trustee's receipt of notice of default from the Bank directing acceleration.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 these methodologies.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. Joann Hempel VP - Senior Credit Officer Public Finance Group Michael J. 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