Fitch Rts Montgomery Cnty, Maryland Ser 2006 A & B $100MM V-R BANs 'AAA/F1+'.

NEW YORK -- Fitch Ratings assigns a rating of 'AAA/F1+' to the $100,000,000, Montgomery County, Maryland, consolidated public improvement bond anticipation notes (BANs), consisting of: $50,000,000 2006 series A and $50,000,000 2006 series B. The long-term 'AAA' rating on the notes is based on the general obligation (GO) rating assigned to Montgomery County (see Rating Action Commentary of May 2, 2006). The short-term 'F1+' rating on the notes is based the liquidity support provided by Dexia Credit Local, acting through its New York Branch, in the form of a Standby Note Purchase Agreement (the SNPA) which provides for the payment of the purchase price of tendered notes during the daily and weekly rate modes if remarketing proceeds are insufficient to pay the purchase price. The SNPA is sized to provide for the entire principal amount of both series of notes, plus 34 days of interest at the maximum interest rate of 10% based on a year of 365 days. The rating on the notes will expire upon the earlier of June 7, 2011, the scheduled termination date of the SNPA, unless such date is extended, or upon any prior termination of the SNPA. The notes are expected to be available for delivery June 7, 2006. Lehman Brothers, Inc. is the remarketing agent for the 2006 series A notes and Bear Stearns & Co. Inc. is the remarketing agent for the 2006 series B notes.

The notes initially bear interest in the daily rate mode, but may be converted to a weekly, commercial paper, term or fixed rate mode. While the notes bear interest in the daily or weekly rate mode, interest is payable on the first business day of the month, commencing July 5, 2006. While in the daily or weekly rate mode, the notes may be tendered for purchase with required notice. The notes are subject to mandatory tender on: (1) each interest mode change date; (2) the end of commercial rate periods; and (3) the expiration, termination or substitution of the SNPA. The notes are also subject to optional and mandatory redemption provisions pursuant to the terms of the note documents.

The notes are being issued to provide funds to finance and refinance the acquisition, construction and equipping of certain public facilities of Montgomery County, MD.

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