Fitch Rates Port of Seattle, Washington $128.4MM Special Facility Bonds 'A-'.

Business Editors

CHICAGO--(BUSINESS WIRE)--April 22, 2003

Fitch Ratings assigns an 'A-' rating to the Port of Seattle, Washington's (the port) $128,425,000 special facility revenue bonds (SeaTac Fuel Facilities LLC (SeaTac Fuel or the company)) series 2003, scheduled for negotiated sale during the week of April 28, 2003 through a syndicate led by Lehman Brothers. The bonds are secured by a trust estate created under a lease between the port and SeaTac Fuel, the primary revenue stream of which are facilities payments made by airlines operating at Seattle-Tacoma International Airport (SeaTac or the airport). Proceeds of the issue will finance the acquisition and improvements to the fuel tank farm and ancillary facilities and the construction of a hydrant-based, at gate distribution system at the airport.

The rating reflects the airport's strong origination and destination market and the long-haul nature of aviation service provided at the airport, creating a natural base for fuel demand; the airport's diversified mix of air carriers in terms of both enplaned passengers and fuel consumption; and the exclusive nature of the fuel system franchise granted by the lease. Credit concerns include the narrow revenue stream securing the bonds, lack of a security position for bondholders in the fueling system, the current financial status of the airline industry, and a potential decline in demand for air transport due to the development of alternative sources of transportation or travel substitutes. The Rating Outlook for the bonds is stable based on the steady demand for air travel to and from Seattle, the lack of competition for local passenger traffic or for fuel distribution, and the essential need for fuel for the conduct of air transportation.

The port is undertaking the development of the fuel system to lower the cost of fuel service at the airport, improve airport safety by reducing the need for fuel trucks to operate on the airfield, and to address environmental concerns created by the current fuel system. The port will build and own the system, which consists of improvements to existing storage tank farm the port purchase from the previous fuel supplier, and the construction of an underground distribution system that will deliver fuel directly to aircraft through hydrants at all of the airport's passenger gates. Fuel for cargo aircraft will continue to be supplied by trucks.

The port will lease the system to SeaTac Fuel which will oversee the day to day management of the system. The lease, which represents an unconditional obligation of the company, extends until the later of July 31, 2033 or the repayment of the 2003 bonds. SeaTac Fuel was created by a consortium of airlines operating at the airport for the purpose entering the lease and managing the system. At present, 20 of the 42 airlines providing service at the airport are members of SeaTac Fuel. Non-member airlines operating at the airport, or airlines that commence operations at the airport, may become members of SeaTac Fuel by meeting the requirements established by the company. In addition to the lease, the company has provided an unconditional guarantee relating to the timely payment of its obligations under the lease.

The lease provides an exclusive franchise to the company to distribute aviation fuel at the airport. All airlines are required to provide their own fuel to the system, which may be purchased from one of four refineries in the Seattle area or another source of an airline's choosing. Member airlines are charged a monthly fee equal to debt service, operation and maintenance expense, port rent, and additional rent (including trustee fees) for access to the fuel system. Member fees are determined net of non-member charges, which may be set at a rate not to exceed 1.5x the highest member fee. In addition, both member and non-member airlines must post a reserve with the company equal to an average of two months usage charges, adjusted annually.

The company has entered into an agreement with Swissport Fueling Inc., a wholly-owned subsidiary of Swissport International Ltd. (Swissport) to operate the system. Swissport ranks as the world's second largest ground-handling agent with 18,000 employees serving 150 airports in 28 countries. Swissport provides ground handling services at 51 U.S. airports, including fueling service at Boston Logan International and Oakland International airports.

Located 12 miles south of Seattle, SeaTac serves as the primary commercial airport for the five-county Seattle-Tacoma metropolitan area. The airport ranked as the nation's 17th busiest in 2002, serving 13.3 enplanements, which represents a 4.1% average annual increase since 1990. A total of 24 passenger airlines serve the airport, with Alaska Airlines and its affiliates serving 43.6% of total enplanements in 2002, followed by United and its affiliates at 13.2% and Northwest at 8.2%.

The airport's high percentage of origination and destination traffic, which the airport estimates averages about 76% annually, combined with the long-haul orientation of air service creates a natural demand for fuel. Fuel consumption at the airport averaged 473.7 million gallons annually since 1998. Alaska Airlines represented the largest source of demand over the six-month period ended March 31, 2003 at 30.8% of consumption, followed by Northwest at 14.2% and United at 10.4%. The 20 members of the SeaTac Fuel consortium accounted for 93% of total consumption during this period, with non-member carriers and general aviation representing the balance.

Based on the airport's forecasted growth in landed weight, fuel consumption is projected to grow at a 3.3% average annual rate through 2013. Based on level debt service of approximately $8.8 million, the debt service component of the monthly fee charged to member airlines is forecast to decline from $0.0176 in 2006 to $0.0139 in 2013. Revenues generated under the lease provide for 1.0 times (x) annual debt service before any reserves.