Correction - Fitch Rates Ohio Capital Facilities Bonds 'AA'.

NEW YORK -- (This is a correction for a press release published earlier today. It contains amended language in the fourth bullet.)

Fitch Ratings assigns an 'AA' rating to the following State of Ohio capital facilities bonds and refunding bonds:

--$25 million Cultural and Sports Capital Facilities Bonds, Series 2006A, 'AA';

--$28.1 million Cultural and Sports Capital Facilities Refunding Bonds, Series 2006B, 'AA';

--$26.4 million Mental Health Capital Facilities Refunding Bonds, Series II-2006B, 'AA';

--$14.8 million Parks and Recreation Capital Facilities Refunding Bonds, Series II-2006A, 'AA'.

The bonds are expected to sell through negotiation on November 28 with a syndicate led by RBC Capital Markets and KeyBanc Capital Markets. In addition, Fitch affirms the 'AA' rating of approximately $3.2 billion of outstanding appropriation bonds of the state and certain agencies.

The 'AA' rating on bonds backed by Ohio's lease appropriations reflects the state's general credit standing, sound lease structures, the broad state purposes of financed projects, and constitutional authorization for these types of bonds. The state treasurer issues obligations to fund the costs of various departmental capital facilities, with debt service funded by biennial legislative appropriations. For the mental health refunding bonds, the state also pledges Department of Mental Health receipts, principally Medicaid and Medicare receipts for patient care. For the parks and recreation refunding bonds, the state also pledges user fees for Department of Parks and Recreation facilities. Each department covenants to include debt service in its biennial budget request.

Ohio's general obligation bond rating is 'AA+', and the Rating Outlook is Stable. The state's general credit characteristics include a moderate debt burden and a demonstrated record of maintaining fiscal balance. The economy is broad, and continues to grow since emerging from recession in 2004. Although job growth has been slower in recent months, increases in services continue to offset declines in manufacturing. Ohio's debt burden remains moderate; excluding the current issues, tax-supported debt equals 3% of 2005 personal income. Ohio amortizes its debt rapidly, 67% in ten years.

Ohio's financial performance in fiscal 2006 was stronger than planned, with personal income and corporate franchise tax strength in spite of wide-ranging tax reforms, enabling the state to end the year with a fund balance of more than $1 billion. The budget stabilization fund now has a balance of $1 billion, or nearly 4% of revenues, following deposit of $394 million in fiscal 2006 surplus resources. For fiscal 2007, Ohio has accelerated scheduled income tax cuts at a cost of $210 million and lowered the original fiscal 2007 revenue forecast 0.5%. Fiscal 2007 actual collections through October show tax receipts 0.4% above the revised budget on continued strength in personal income. Non-auto sales and use tax collections are 3.1% below the downwardly-revised fiscal 2007 estimate, and 0.6% below last year's level, reflecting weakness in consumer spending.

Ohio's economy continues to grow slowly since the recession. October 2006 employment was up 0.2% year-over-year, the slowest rate of growth to date this year, and below the 1.4% U.S. growth rate for the same period. Service sectors continue to grow, with leisure and hospitality up 2%, educational and health services up 1.3%, and professional and business services up 1%. Weakness persists in manufacturing, down 1.1% year-over-year due to weakness in domestic auto and auto parts manufacturing, and retail, down 1.6%.

The cultural and sports capital facilities series 2006A bonds mature April 1, 2008-2020 and are subject to early redemption beginning April 1, 2016. The cultural and sports capital facilities refunding series 2006B mature October 1, 2011-2015; the mental health capital facilities refunding bonds series II-2006B mature December 1, 2011-2016; and the parks and recreation capital facilities refunding series II-2006A mature December 1, 2013-2016. All three refunding series are not subject to early redemption.

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.