Fitch Rates Addison, Illinois' $5.4MM Rfdg UTGOs 'AA+'.

CHICAGO -- Fitch Ratings assigns an 'AA+' rating to the Village of Addison, Illinois' following issues:

--Approximately $3,050,000 general obligation (GO) refunding bonds, series 2006A;

--Approximately $2,385,000 taxable GO refunding bonds, series 2006B.

The bonds are scheduled to price on Sept. 18 through First Trust Portfolios, L.P., with Speer Financial, Inc. serving as financial advisor to the village. The bonds represent a GO of the village, payable from an unlimited ad valorem tax levied on all taxable property within the village. Proceeds will refinance a portion of the village's outstanding GO bonds. Fitch also affirms its 'AA+' rating on the village's approximately $25 million of outstanding GO debt. The Rating Outlook is Stable.

The 'AA+' rating reflects the village's growing economic base, sound financial position, and modest debt burden. Addison's location near the center of the Chicago metropolitan area spurred its development into an important distribution and industrial center, and coupled with residential growth, resulted in steady tax base expansion over the last decade. The village maintains a strong financial position, bolstered by several untapped home-rule taxing powers that provide significant financial flexibility. Direct debt levels should remain low as the village plans to finance most of its minimal capital needs through internal resources.

Addison, with an estimated 2005 population of 36,811, is located in eastern DuPage County, approximately 25 miles west of downtown Chicago and 14 miles southwest of O'Hare International Airport. The village is a major distribution center for the Chicago metropolitan area due to its central location and proximity to O'Hare, railroads, and three interstate highways. The village's leading employer is United Parcel Service of America, Inc. (UPS), with more than 2,700 employees, followed by several mid-sized companies that provide a mix of products and services. Residential employment, however, reflects opportunities available throughout the Chicago metropolitan region. The unemployment rate in the village declined markedly to 4.1% in July 2006, from 6.4% in July 2005.

Steady growth in the tax base, averaging 6% annually since 1995, reflects both residential and commercial development. The tax base is diversified with residential uses accounting for 60% of assessed value, industrial at 31%, and commercial at 9%. Over the past several years, the village added restaurants, a hotel, and a grocery store to its commercial base and continues to slowly annex adjacent unincorporated areas.

Addison is a home-rule community in sound financial condition. Over the past several years, the village used operating funds to finance capital projects including the construction of a new village hall. Total general fund balance in fiscal 2005 (April 30 year-end) equaled $7.2 million, or 38.3% of expenditures, an increase from 2001's $5.3 million (32.1%). The village continues to maintain its fund balance according to its policy of at least 25% of expenditures. Preliminary fiscal 2006 results indicate the village will realize another operating surplus, achieved through revenue performance beyond budgeted expectations. The village's home-rule sales tax as well as its state-distributed sales tax have grown at double-digit rates in the past several years as consumption activity has strengthened.

The village's direct debt levels are modest, with debt per capita equal to $692 and 0.7% of market value. Overall debt is moderate at $1,769 per capita and 1.9% of market value. The capital plan, including a road maintenance program, is funded from internal sources. The village will likely issue about $13 million in December 2006 to expand its library, a project that will almost double the size of the existing facility with expected completion in 2008.

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