Fitch Assigns Underlying 'BBB' to South Florida Stadium Corp. 2007 Taxable Revs; Stable Outlook.

NEW YORK -- Fitch Ratings assigns an underlying 'BBB' rating to Miami-Dade County Industrial Development Authority's (IDA), Florida approximately $50,000,000 taxable IDA revenue bonds (Dolphin Stadium Project) series 2007. In addition, Fitch affirms the underlying rating on approximately $190,000,000 in outstanding Miami-Dade County IDA revenue bonds (Dolphin Stadium Project) series 2006 (taxable), series 2000 (taxable) and series 1985 (tax-exempt) at 'BBB'. The Rating Outlook is Stable. The series 2007 bonds are expected to be sold through negotiation during the week of April 2 by Merrill Lynch and Co., Inc. The outstanding bonds are supported and the series 2007 bonds are expected to be supported, respectively, by a letter of credit (LOC) provided by Societe Generale, which is rated 'AA/F1+' by Fitch.

South Florida Stadium Corp. (SFSC) or Dolphin Stadium is the obligor for all debt service payments. Dolphin Stadium was formerly known as Pro Player Stadium and prior to that, Joe Robbie Stadium. The net revenues of Dolphin Stadium secure the bonds. Bond proceeds will be used by SFSC to pay for or to reimburse itself for a portion of certain costs associated with certain alterations and improvements to Dolphin Stadium and to pay certain costs of issuance.

The 'BBB' long-term debt rating for the bonds reflects Dolphin Stadium's sound, economically diverse service area, which has yielded consistently solid attendance levels and strong financial results since its opening in 1987. Dolphin Stadium is home to the National Football League's (NFL senior unsecured rated 'A+' by Fitch) Miami Dolphins and Major League Baseball's (MLB, rated 'A', Trust Securitization by Fitch) Florida Marlins, which represent South Florida's only professional football and baseball teams. SFSC's proactive management, which continues to aggressively achieve and analyze both current and new advertising and sponsorship revenues as well as other key revenue endeavors while closely managing expenses, is a key rating factor. Primary risks include public discussion to relocate the Florida Marlins to a baseball-only stadium in Miami, potential work stoppages with MLB and NFL and renewal risks associated with key revenue contracts. Fitch considers the Miami Dolphins the stadium's anchor tenant and believes that the departure of the Marlins would not materially impact SFSC's rating.

Dolphin Stadium is a state-of-the-art, multipurpose sports and entertainment facility in South Florida that was completed and commenced operations in 1987. Dolphin Stadium was one of the first stadium projects in the U.S. built to 'enhance the fan experience' while adeptly understanding the modern day economics of professional sports. The current construction and renovations aim to continue the Stadium's modern and innovative appeal with the addition of two new high-definition scoreboards; a 360-degree digital ribbon board; new concession areas including bars and restaurants; suite renovations; additional retail spaces; fan interactive areas and new corporate hospitality areas. Since its opening SFSC has completed a number of broad capital improvements and renovations to maintain Dolphin Stadium's facilities.

Fitch expects some weakening in financial margins due to the increased debt associated with the series 2006 and 2007 bonds and higher annual debt service obligations associated with the aforementioned bonds. Additionally, the debt will extend to 2031, 15 years past the lease of the stadium's anchor tenant, as referenced below, at which time the stadium will be 44 years old. Fitch expects debt service coverage levels to decline to 2.05 times (x) in the near to medium term, from historically high levels of 3.0x-5.0x. Additionally, Fitch has some concern given projected financial margins are in part dependent upon incremental revenue generated by stadium enhancements.

The rating also incorporates the Dolphins' lease with Dolphin Stadium which currently expires in 2016. While this eliminates franchise relocation risk until 2016 there is no contractual obligation for the Dolphins to play through the term of the debt. However, Fitch expects the Dolphins will ultimately extend the lease and continue to play at Dolphin Stadium in South Florida given the strong historical local franchise support and recognition, construction renovations currently underway at the stadium that will enhance both fan appeal as well as increased revenues, and the strong current ownership group that has funded a significant portion of the renovation and expansion plans with owner's equity. Furthermore, Fitch's concern regarding the lease is mitigated by the support of the aforementioned LOC, which pursuant to the terms of the bond documents requires a mandatory tender of all bonds if the LOC is not extended, or it terminates for any reason.

Dolphin Stadium seats 75,000 for football games, and 40,000 for baseball games. There are 240 luxury suites, 10,227 club seats, and 25,000 parking spaces for cars and 254 for buses. Dolphin Stadium recently hosted the NFL's Super Bowl in 2007 and will again in 2010. Additionally, Dolphin Stadium recently extended the contract with the National Collegiate Athletic Association's (NCAA) Division I Men's Football Orange Bowl Classic (a college football post-season game) through 2014 with a four-year optional extension and will host the NCAA Division I Men's Football Bowl Championship Series National Championship Game in 2009 and 2013.

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.