Correction: Fitch Rates Clark County, Nevada's 2004A-1, A-2, 2004B & 2004C Airport Revs 'A+'.

SAN FRANCISCO -- (This is an amended version of a press release issued yesterday, containing revised broker dealer information in the first paragraph.)

Fitch Ratings assigns an 'A+' rating to Clark County, Nevada's airport system subordinate lien revenue bonds, $130,425,000 series 2004A-1 (AMT) and $241,765,000 series 2004A-2 (non-AMT). Fitch also assigns an 'A+' rating to $65,850,000 auction-rate airport system subordinate lien revenue refunding bonds, series 2004B (AMT) and $39,900,000 auction-rate airport system subordinate lien revenue bonds, series 2004C (AMT). The Rating Outlook is Stable. The 2004B&C bonds will be initially issued in a 35-day mode, with UBS Financial Services Inc. serving as the broker-dealer for the series 2004B and J.P. Morgan Securities Inc. for the 2004C. Through a negotiated sale, led by Citigroup, the series 2004A-1 & 2004A-2 bonds are expected to price on July 27 and 28 and the 2004B&C bonds are expected to price on Aug. 30.

Fitch also affirms the 'AA-' rating on approximately $221 million airport system senior lien revenue bonds and the 'A+' rating on $688 million airport system subordinate lien revenue bonds and $582 million passenger facility charge/airport system subordinate lien revenue bonds. Finally, Fitch affirms the 'A' rating on $105 million 2003C jet aviation fuel tax and airport system third lien revenue bonds.

Clark County Department of Aviation consists of Las Vegas McCarran International Airport (McCarran) and five other general aviation or reliever facilities. Series 2004 bond proceeds will be used to fund several projects, including design of McCarran's Terminal-3, land acquisitions, and concourse and in-line EDS projects. Net revenues, after payment of senior lien bonds, secure the 2004 bonds.

The 'A+' rating reflects McCarran's strong enplaned passenger levels, solid presence of low-cost carriers, and its 89% origination and destination (O&D) traffic base.

Total enplanements declined 9.1% during fiscal-year (FY) 2002, yet rebounded with 4.1% growth in FY 2003 and 7.9% growth year-to-date in FY2004 (eleven months actual). The results of which are nineteen million enplaned passengers or passenger levels exceeding FY 2001 figures before the decline. 27 carriers provided scheduled service during FY 2003, including a strong presence from Southwest Airlines (32% of the overall market share) and America West (16%). The Las Vegas region is a destination, evidenced by the low percentage (11%) of connecting passengers.

Additional credit strengths include McCarran's strong financial margins and burgeoning service area. Historical enplanement growth coupled with the use of a hybrid rate-making methodology generated strong financial results. The FY 2003 operating margin was a healthy 45% and non-airline revenues as a percentage of operating revenues was very strong at 86%. Debt service coverage (including the coverage fund) on the senior and subordinate bonds was 3.80 times (x) and 2.41x, respectively in FY2003. Furthermore, the FY 2003 landing fee was $1.22 and the cost per enplaned passenger was $5.03, both very competitive within the industry. Lastly, McCarran serves the ever growing Las Vegas region with a 2003 resident population of 1.6 million and 35 million visitors. Approximately 50% of all visitors arrive by air and use McCarran.

Credit concerns include McCarran's increasing debt burden, variable-rate exposure, and use of Swaps. These risks are somewhat mitigated by McCarran's solid cash balances, $128 million(unrestricted) in FY 2003, and sound annual operating margins. Also, the Las Vegas service area economy remains concentrated in gaming, tourism, and the convention industries. However, growth in the non-gaming sectors outpaced the gaming sector in recent years and unemployment remains lower than the nation at 5.2 % during FY 2003. Lastly, the county has a large long-term demand-driven airport capital improvement program requiring additional future debt. Although the timing for these developments remains unknown and potentially delayed due to the current aviation environment, Fitch will continue to monitor its development.