Fitch Rates West Palm Beach, Florida's $99.99MM 2008C Utility System Bonds 'AAA/F1+'

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has assigned 'AAA/F1+' ratings to the City of West Palm Beach, Florida's $99,990,000 utility system variable-rate revenue bonds, series 2008C.

The long-term 'AAA' rating is based on the support provided by a financial guaranty insurance policy issued by Assured Guaranty Corp., supporting the bonds. The policy, which insures scheduled payments of principal and interest, extends to the maturity of the bonds, Oct. 1, 2038.

The short-term 'F1+' rating is based on the liquidity support of the standby bond purchase agreement (SBPA) provided by Dexia Credit Local. The SBPA provides for the payment of the principal component of purchase price and up to 35 days of interest calculated at a maximum rate of 12% per annum based on a year of 365 days. The SBPA will expire on Aug. 20, 2011, unless extended or earlier terminated pursuant to its terms. The remarketing agent for the bonds is Citigroup Global Markets, Inc. The bonds are expected to be delivered on or about Aug. 20, 2008.

The bonds initially bear interest in the weekly rate mode, but may be converted to bear interest at the daily, flexible, term rate, or fixed rate modes. While the bonds bear interest in the weekly rate mode, interest is payable on the first Wednesday of each month, commencing Sept. 3, 2008. Holders of bonds bearing interest at a weekly rate mode may tender their bonds for purchase with prior notice. The SBPA covers bonds in the weekly rate mode only.

The bonds are subject to a mandatory tender upon conversion of the interest rate modes, upon the expiration or substitution of the SBPA, upon substitution of the bond insurance policy in modes other than term and fixed rate, and upon the occurrence of certain events of default under the SBPA. The bonds are also subject to mandatory and optional redemption provisions.

The proceeds of the bonds will be used to pay a portion of the cost of the improvements to the utility system, including certain costs of issuing the bonds.

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.

Fitch Ratings, New York
Joseph Staffa, +1-212-908-0829
Cindy Stoller, +1-212-908-0526 (Media Relations)