Fitch Rts $70.3MM Utah Water Finance Agency Series B Program Revs 'AA/F1+'

NEW YORK--(Business Wire)--
Fitch assigns a rating of 'AA/F1+' to the $70,300,000 Utah Water
Finance Agency Series B Program revenue bonds (variable-rate tender
option bonds) series B-2 (the bonds) issued on behalf of the Central
Utah Water Conservancy District (the district). Fitch also affirms the
'AA' rating on the district's outstanding water revenue bonds, series
2005B. The long-term 'AA' rating on the bonds is based on the
long-term credit quality of the district. The Rating Outlook is
Stable. The 'F1+' short-term rating is based on liquidity support
provided by JPMorgan Chase Bank, National Association in the form of a
Standby Bond Purchase Agreement (SBPA)

The long-term 'AA' rating on the district is based on the
district's status as a long-established entity with strong management
and extensive experience in working closely with federal and state
governments to construct, operate, and manage an essential service to
a growing population across ten counties. The rating also reflects
that debt amortization is slow, debt levels are very low, and the
district has covenanted to pay operations and maintenance costs from
ad valorem property tax revenues. Pledged gross non-taxation revenues
from the water system are projected to ensure debt service coverage
for all outstanding indebtedness exceeds 2 times (x).

The short-term 'F1+' rating on the bonds is based on the liquidity
support of a standby bond purchase agreement (SBPA) provided by
JPMorgan Chase Bank, National Association. The SBPA provides for the
payment of the purchase price of tendered bonds during the daily and
weekly rate modes in the event the proceeds of a remarketing of the
bonds following an optional or mandatory tender are insufficient to
pay the purchase price. The SBPA is sized to provide for the entire
principal amount of the bonds, plus interest coverage of 35 days
calculated at a maximum interest rate of 12%, based on a year of 365
days. The SBPA will expire on May 21, 2009 unless such date is
extended, or upon the occurrence of other events of termination, all
in accordance with its terms. Fitch's short-term rating expires on the
expiration or termination of the SBPA. George K. Baum & Company is the
underwriter and remarketing agent for the bonds. The bonds are
expected to be available for delivery on or about May 22, 2008.

The bonds will be issued in the weekly interest rate mode and may
be converted to a daily, commercial paper, long-term, or fixed-rate
mode. While the bonds bear interest in the weekly rate mode interest
will be paid on the first business day of each calendar month. Holders
of bonds bearing interest in the weekly or daily rate modes may tender
their bonds for purchase with prior notice.

Bonds are subject to purchase in lieu of redemptions: (1) on the
effective date of any change in the interest rate mode; (2) on the
business day prior to any expiration, termination or substitution of
the SBPA; (3) on the first day of any new long-term period; and (4) on
each interest payment date while the bonds are in commercial paper
mode. Optional and mandatory redemption provisions also apply to the
Bonds pursuant to the terms of the documents.

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
Linda Friedman, 212-908-0727, New York
(for information concerning the short-term rating)
Alan Gibson, 415-732-1752, San Francisco
(for information concerning the long-term
rating or Central Utah Water Conservancy District)
or
Media Relations:
Cindy Stoller, 212-908-0526, New York

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