City of Coral Gables Maintains Highest Bond Ratings From Moody's and Standard & Poor's; City Also Receives ``Distinguished Budget Award'' for 13th Consecutive Year.

Business Editors

CORAL GABLES, Fla.--(BUSINESS WIRE)--Feb. 10, 2003

The City of Coral Gables is one of a few cities across the country to once again receive the highest credit ratings from two of the nation's premier bond rating companies. Evaluated annually, the City has maintained its Aa1 rating from Moody's and its AAA rating from Standard & Poor's.

Moody's Investor Services completed its annual credit assessment of borrowers in the Sunshine State Governmental Financing Commission and gave the City of Coral Gables its top rating. The City uses the Sunshine State Governmental Financing Commission to finance all of its capital improvements.

Standard & Poor's "AAA" rating is the company's highest rating, and means that the City's capacity to meet its financial commitments is "extremely strong." Moody's rating of "Aa1" is also the company's highest rating, and reflects the organization's assessment of the City of Coral Gables' implicit credit strength, citing a strong economic base supported equally by commercial establishments and high residential properties, sound finances, and limited outstanding debt.

The City of Coral Gables was first awarded the highest-level "AAA" bond rating in 1998, following 15 consecutive years as a top-notch "AA" rating.

"Despite one of the most financially difficult years the City and the nation have experienced in nearly a generation, these ratings confirm that the City of Coral Gables remains as resilient, strong and stable as ever," said City Manager David L. Brown. "This also undoubtedly reflects the City's financial stability and economic diversity, due to its excellent balance of residential and business with local, national and international economic resources."

"While several financial challenges faced the City this past year, our Commission has proven its mettle by identifying the problems, doing what it takes to correct them, and moving forward," added Mayor Don Slesnick. "These top-echelon ratings -- matched by less than a handful of cities across the country -- are the fruits of the Commission's labor, and a confirmation of a successful approach to sound fiscal management."

Moody's expects the economic base of Coral Gables to continue to expand, supported by ongoing commercial development and bolstered by the strong resale of, and improvements to, residential properties. The City is home to more than 150 multinational firms, as well as the University of Miami (4,000 employees), with the majority of the 7,000 businesses located in the City employing less than 10 personnel, contributing to a diverse employment base. Health care and banking establishments, and Latin American regional offices of major U.S. companies, are well represented in the City's economic base.

The City also received an Award for Distinguished Budget Presentation from the Government Finance Officers Association of the United States and Canada (GFOA), for its annual budget for fiscal 2001-2002. This is the 13th consecutive year the City has received the award, which is based on the budget's effectiveness as an operations guide, a financial plan, and a communications medium.

For additional information please contact Don Nelson, Finance Director for the City of Coral Gables, at 305/460-5275.