Correction: Fitch Rates Manatee Port Authority, Florida's $17.5MM Rev Bonds 'AA-'.

Business Editors

CHICAGO--(BUSINESS WIRE)--Aug. 2, 2002

(this is an amended version of a press release issued earlier today, containing revised information on the sale date for the revenue refunding bonds in paragraph 1)

Fitch Ratings has assigned an 'AA-' rating to Manatee Port Authority, Florida's (the authority) $17,500,000 revenue refunding bonds, series 2002, scheduled for negotiated sale on or about Aug. 26. Proceeds of the bonds will refinance the authority's outstanding revenue notes payable to the Florida Local Government Finance Commission. The bonds are secured by a pledge of the net revenues generated from the operations of Port Manatee (the port)and Manatee County's (general obligation bonds rated 'AA+' by Fitch) covenant to budget and appropriate non-ad valorem tax revenues sufficient to replenish a deficiency in the authority's debt service reserve. The authority plans to insure the bonds through a monoline insurance company whose insurer financial strength is rated 'AAA' by Fitch. The 'AA-' rating also applies to the authority's $15.4 million outstanding parity revenue bonds.

The 'AA-' rating reflects the county's expanding economic base and sound financial position that supports its pledge to replenish the authority's debt service reserve in the event of a deficiency. The authority's strong financial performance and increasing cargo activity also represent strengths of the credit. Credit concerns include the port's somewhat concentrated customer base and the competitive nature of the port industry in the southeastern United States. The Stable Rating Outlook reflects the county's strong support for the port's economic development activities and the authority's modest capital improvement program that should improve the facility's competitive position without significantly increasing its debt burden.

Manatee County's 2001 population of 268,071 represents a 3.3% annual increase from 1990. Growth in tourism, technological companies, and light manufacturing diversified the economic base over the past decade. As a result, county employment levels rose 5.8% annually, lowering the unemployment rate to 3.3% as of May 2002, from a peak of 5.3% in 1993. The accompanying growth in the tax base, which rose 8.1% annually since 1995, supported the county's strong financial performance during the period as the undesignated general fund balance increased to $55.8 million, or 38.1% of expenditures and transfers out, in fiscal 2001, from $48.2 million or 36.2% of expenses in 1999. The county's significant financial resources provide it with substantial flexibility to fulfill its obligation to replenish the port authority's debt service reserve in the event of a deficiency.

Located on the eastern shore of Tampa Bay, approximately 50 miles south of Tampa and 10 miles from the Gulf of Mexico, Port Manatee (the port) consists of a ship basin with eight berths and 1,098 acres of land for support facilities. Petroleum, fertilizer, cement, and food products represent the majority of cargo moving through the port.

The authority acts as a landlord, leasing land and facilities on a long-term basis to shipping lines, stevedoring companies, and general freight agents. The port's largest customers include Florida Light and Power (11.3% of billings in fiscal 2001), Fillette, Green and Co., (11%) and Del Monte Fresh Produce (9.1%). Gulfstream Natural Gas, which built a pipeline across the Gulf of Mexico from Alabama through Port Manatee, represented the port's largest source of revenue during fiscal 2001 at 18.5% of total receipts. However, as Gulfstream completed the pipeline earlier this year, revenues from the project should diminish significantly during fiscal 2002 and 2003.

The long term leases provide a stable financial base for the authority, which also generates revenue through wharfage, dockage, and other cargo-based tariffs. Increasing cargo traffic, and the presence of Gulfstream, resulted in a 16.2% annual increase in the port's operating revenues since fiscal 1998. As expenditures remained fairly steady during the period, coverage of outstanding debt service from net revenues increased to 4.2 times (x) in 2001 from 2.1x in 1998. Excluding revenue derived from the temporary operations of Gulfstream, debt service coverage equaled 2.7x in during fiscal 2001.