Amended: Fitch Rates Polk County, Iowa's $116MM GOs 'AA+'.

CHICAGO -- (This press release has been amended to reflect series 2006E bonds, which have been added to the transaction. The transaction total is the same as originally reported on Nov. 17, 2006.)

Fitch assigns an 'AA+' rating to Polk County, Iowa's $35,000,000 general obligation (GO) bonds, series 2006E, and affirms the rating on $68,000,000 GO bonds, series 2006C, and $13,020,000 GO bonds, series 2006D. All three series are scheduled for competitive sale on Dec. 4, 2006. Public Financial Management, Inc. is serving as the county's financial advisor. The bonds represent general obligations of the county, payable from unlimited ad valorem taxes levied on all taxable property within the county's jurisdiction. Proceeds will finance the expansion of the county jail and improvements to the county's exhibition hall. In addition, Fitch affirms the 'AA+' rating on the county's approximately $184 million of outstanding GO bonds. The Rating Outlook is Stable.

The 'AA+' rating reflects the county's broad and diverse economic base, sound financial operations, and low direct debt burden. County personal income, which grew 5.6% annually for the 10-year period ended 2004, outpaced state and national gains of 4.7% and 5.2%, respectively. Financial and health care services led the economy in recent years and promoted employment growth and private investment. The county derives gaming revenues through Prairie Meadows Racetrack and Casino, but committed most future gaming revenues to financing debt service related to the Iowa Events Center. The Center is now complete and functional in its first full year of operations; its full operating impact and revenue stream will determine the degree of county subsidy.

Polk County, located in central Iowa, includes the state capital of Des Moines. With a 2005 estimated population of 401,006, it is the state's largest and wealthiest county. Per capita personal income equals 122% and 115% of the state and national averages, respectively. The county's large non-farm employment base grew 1.2% annually since 1996, resulting in unemployment rates consistently below state and national averages. After peaking at 4.8% in 2004, the county's unemployment rate declined to 3.0% in September 2006, compared to 3.1% and 4.4% in the state and nation, respectively.

Consistent economic growth, combined in past years with revenues from the Prairie Meadows Racetrack and Casino, has allowed the county to produce consistent operating surpluses before capital budget transfers and sustain sizable financial reserves. For the year ended June 30, 2005, the county's general fund balance equaled $29.2 million, or 27.8% of expenditures and transfers out, down from $35 million (37.3%) in fiscal 2001, due to one-time transfers for capital projects and risk management funds. The county's preliminary, unaudited, fiscal 2006 results anticipate a small surplus in the general fund. The county's ample financial flexibility derives from strong budgetary practices and steady economic growth. Its stated fund balance policy requires 20%-25% of unrestricted general fund spending be kept within the fund as a reserve, and the county also maintains a contingency fund within its special revenue funds to provide additional fiscal cushion.

With the current issues, direct debt ratios remain low at $732 per capita and 1.1% of full market value. Overall debt is $1,287 per capita and 2.0% of full market value, largely reflecting the debt of the City of Des Moines and area school districts. Amortization is rapid, with 79% of principal retired in 10 years.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.