Fitch Rates Manatee County, Florida's $62MM Revenue Improvement Bonds 'AA'.

TAMPA, Fla. -- Fitch Ratings assigns an 'AA' rating to Manatee County, FL's (the county) approximate $62 million revenue improvement bonds, series 2006. The bonds are scheduled sell the week of Aug. 28 via negotiation with a syndicate led by Citigroup Global Markets, Inc. Fitch also affirms the 'AA' rating on the county's $117 million of outstanding parity bonds payable from non-ad valorem revenues and the 'AA+' rating on the county's $25 million of general obligation debt. Bond proceeds will be used to fund a portion of a new judicial center, a portion of a new emergency operations center (EOC) and to reimburse the general fund for the acquisition of an office building. The Rating Outlook is Stable.

The 'AA' rating reflects the diverse mix of non-ad valorem revenue sources, which the county covenants to budget and appropriate to pay debt service, as well as the county's strong general credit characteristics. The latter include a consistent, solid financial position characterized by ample cash and reserves; thorough infrastructure planning; and low debt levels. Following the current offering, the covenant to budget and appropriate legally available non-ad valorem revenue secures approximately 80% of the county's outstanding non-self supported debt.

The debt service coverage on these bonds and parity obligations is strong. Audited fiscal 2005 revenues cover projected maximum annual debt service (MADS) on all parity debt by 6.5 times (x). While sound legal provisions that limit additional parity debt provide additional security to bond holders, the practical limitation for additional debt is even higher given the need for excess revenue to fund general government operations. The major sources of revenue available for debt service come from sales tax, gas taxes, and charges for services.

Manatee County is located south of Tampa on Florida's Gulf Coast. County population growth continues to outpace that of the state and increased 16% since the 2000 census to reach an estimated 307,000. While tourism-related activities and services dominate the economic characteristics of the county, some diversification is derived from area hospitals and manufacturing; Tropicana Products, Inc., a unit of PepsiCo, maintains a significant presence in the county and employs approximately 1,600. Unemployment rates continue to track well below state and national averages, reflecting local employment opportunities as well as access to the broader region that includes Tampa and Sarasota.

Financial performance is solid and year-over-year positive performance in the general fund has increased reserves to $89 million for fiscal 2005, equal to a very strong 45% of spending and other uses. As planned and budgeted, general fund reserves are expected to be reduced by approximately $28 million for capital spending in fiscal 2006. The county's practice of funding a sizeable portion of its capital needs with cash results in very low debt levels which should remain low given limited plans for future tax supported debt and expected continued growth of the tax base.

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