Correction: Fitch Rates Polk Cnty, FL $38.4MM Constitutional Fuel Tax Rev Improv & Rfdg Bonds 'AA-'.

NEW YORK -- (This is an amended version of a release originally issued Nov. 9, and contains revised information in the third paragraph on the debt service schedule.)

Fitch Ratings assigns an 'AA-' rating to Polk County, Florida's $38.4 million constitutional fuel tax revenue improvement and refunding bonds, series 2006. The bonds, expected to be insured, are scheduled to sell the week of Nov. 13 via negotiation led by UBS Securities LLC. RBC Capital Markets is the county's financial advisor. Also, Fitch affirms the 'AA-' rating on the system's approximately $15.8 million of outstanding constitutional fuel tax revenue refunding bonds, which will be defeased with proceeds from the current issue. Fitch has revised the Outlook to Stable from Negative on these bonds as well as all bonds secured by fuel and sales taxes. The Outlook on these bonds is now consistent with that of other tax-supported bonds of Polk, and does not reflect a change in credit quality.

The 'AA-' rating on Polk County's constitutional fuel tax bonds is based on the stable nature of fuel tax revenue and solid coverage of maximum annual debt service (MADS). In addition, the rating incorporates the county's general credit characteristics, including moderate debt levels and strong general fund reserves, offset by a sizeable increase in planned capital spending over the next five years, below average wealth indicators, and a somewhat limited but diversifying economic base.

The bonds are secured by a pledge and a lien on the county's constitutional fuel tax revenue. The tax is a two-cent per gallon levy on the sale of gasoline and like sources of energy to fuel motor vehicles. It is collected by the State Board of Administration of Florida and distributed among counties according to a weighted formula that incorporates relative land area, population, and gas tax sales. Use of the proceeds is restricted to the construction and maintenance of roads. Constitutional fuel tax revenue of $6.7 million in fiscal 2006 provides 1.7 times (x) coverage of maximum annual debt service (MADS), which occurs in 2016. Coverage should remain sound, as the additional bonds test requires coverage of 1.5x from historical revenues, and the county has no plans to further leverage this revenue source. Growth in fuel tax revenue has been modest, increasing at a compound annual rate of 2.0% from fiscal 2001 to fiscal 2006. Fitch notes that while the county's fuel tax revenues have increased since fiscal 2001, the county's distribution factor has declined slightly during the same period.

Overall debt levels, including debt of the school district, are moderate at 2.28% of TAV. Debt levels are expected to increase given the county's revised capital improvement plan (CIP). The five-year plan, spanning fiscal 2007-2011, totals $1.6 billion, an increase of 157% over the 2006-2010 CIP. Transportation and sewer utility projects (revenue bonds rated 'A+' by Fitch) comprise 77.6% of the CIP, and the county intends to fund 25% of the plan through debt issuances. While Fitch is concerned about the dramatic increase in the CIP from the plan presented last year, Fitch believes that debt levels will remain consistent with the rating category.

The area economy is somewhat limited, but has diversified from its traditional base in citrus and phosphate mining. Benefiting from its location between the rapidly growing Tampa and Orlando areas and good transportation links, the county is increasingly attractive as a light manufacturing and distribution center. Tax base growth has been strong, averaging 11.1% compounded annually since fiscal 2000. The unemployment rate has historically been above state and national levels though it has been lower than the national annual rate since 2003, reflecting jobs derived from the diversifying economic base, as well as access to the rapidly growing Tampa and Orlando metropolitan areas.

The county's financial position has strengthened following several years of volatile financial performance characterized by negative operating results and significantly reduced general fund reserves. The county ended fiscal 2004 and 2005 with sizable general fund surpluses. The fiscal 2005 general fund unreserved and undesignated fund balance represented 28.6% of total general fund spending, a strong reserve level for a Florida county. The improved financial position is attributable to significant annual increases in tax revenues, reflecting healthy growth in taxable assessed values (TAV) as well as growth in sales and public service taxes. County officials indicate that they will end fiscal 2006 with another small operating surplus.

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