Fitch Affirms Okaloosa County, Florida's Implied GOs at 'A+'.

NEW YORK -- In the course of routine surveillance, Fitch Ratings affirms Okaloosa County, Florida's (the county) implied general obligation (GO) rating at 'A+'. The Rating Outlook is Stable.

The 'A+' rating reflects the county's low debt levels, manageable capital needs, and adequate financial flexibility. Also factored into the rating is the county's stable economy resulting in sound wealth levels and a below average unemployment rate. The Stable Outlook reflects Fitch's expectation that the county will maintain sufficient financial flexibility during a time of potentially stagnant revenues.

Okaloosa County is located on the Gulf Coast of Florida's panhandle, bordered by Alabama to the north. The area economy is stable, anchored by Eglin Air Force Base, which employs approximately 22,000 military and civilian personnel, and is bolstered by tourism as well as military technical support providers and health care. Unemployment rates have increased with the current economic downturn to 7.1% for June 2009 from 4.4% a year prior, remaining well below state and national averages. Wealth levels remain high with median per capita income at 113% of state and national levels.

Financial operations have improved in recent years as the county experienced general fund surpluses in the last five audited years, increasing the unreserved fund balance to 6% of spending. Fiscal 2009 projections show a slight drawdown of roughly $0.8 million which would result in an unreserved fund balance totaling a still healthy 5.4%. The proposed fiscal 2010 budget is balanced with no use of reserves.

Debt levels are quite low at $504 per capita and 0.6% of taxable assessed value (TAV). Capital needs are manageable with a five year capital improvement project totaling $168.7 million. Future debt plans are limited to a maximum of $14 million to finance the construction of a courthouse annex building.

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