The FCC’s Wireline Competition Bureau has partially waived, sua sponte, the requirement that a bank that issues a letter of credit (LOC) to a support recipient for the CAF Phase II Auction (Auction 903) or the Rural Digital Opportunity Fund Auction (Auction 904) must maintain a Weiss bank safety rating of B- or better. Recent submissions to the FCC from banking institutions indicate that a majority of U.S. banks are no longer eligible to issue LOCs to auction recipients because they have a safety rating less than a B-.
This limited waiver only applies to banks that previously issued LOCs to Auction 903 or 904 support recipients, and therefore previously had a Weiss bank safety rating of B- or better. This waiver does not allow a support recipient to obtain an LOC from a new bank that did not previously provide it with an LOC if such bank has a Weiss safety rating below a B-. This waiver expires on March 12, 2025.
