Fitch Rates Washington Economic Development Finance Authority's (Belina Interiors)...

Fitch Rates Washington Economic Development Finance Authority's (Belina Interiors) VRDB's 'A/F1'

NEW YORK--(Business Wire)--
Fitch assigns an 'A/F1' to the Washington Economic Development
Finance Authority (Belina Interiors, Inc. Project) tax-exempt variable
rate economic development revenue bonds consisting of:

--$1,110,000 series 2003F;

--$970,000 series 2003G;

--$1,400,000 series 2008E;

--$100,000 series 2008F.

The rating is based on the support provided by an irrevocable,
direct-pay letter of credit (LOC) issued by KeyBank National
Association, securing the bonds. The bank is obligated to make
payments of principal and interest when due, as well as purchase price
for tendered bonds. The rating will expire upon the earliest of: the
stated expiration date of the LOC, September 4, 2013, which date shall
be automatically extended for one year periods unless the bank gives
prior notice of non-extension; any prior termination of the LOC; and
defeasance of the bonds. The LOC provides full coverage of principal
plus an amount equal to 45 days' interest at a maximum rate of 10%
based on a 365-day year. The remarketing agent for the bonds is Gates
Capital Corporation. The 2003 bonds are to be remarketed on September
4, 2008 and the 2008 bonds are expected to be delivered on or about
September 4, 2008.

The bonds initially bear interest at the weekly rate mode, but may
be converted to a fixed interest rate mode. While bonds bear interest
in the weekly rate mode, interest payments are made on the first
business day of each month, commencing October 1, 2008. During the
weekly rate, bondholders may tender their bonds on any business day,
provided the trustee is given seven days' prior notice of the
purchase. The bonds are subject to mandatory tender upon substitution
of the LOC and upon conversion of the interest rate mode. The bonds
are subject to mandatory redemption upon expiration of the LOC, and
upon an event of default under the reimbursement agreement. Other
optional and mandatory redemption provisions also apply to the bonds.

The 2003 bonds were originally issued in October of 2003 to pay
the cost of or reimburse the borrower for financing the cost of
acquisition, construction, rehabilitation and equipping of a yacht
interiors manufacturing facility to be located and to refinance
certain outstanding indebtedness with respect to certain real and
personal property located in Tacoma, Washington. The series 2008 bonds
are being issued to pay the cost of or reimburse the borrower for
financing the cost of the acquisition, rehabilitation and equipping of
a manufacturing facility and the rehabilitation of existing
manufacturing facilities which are located in Pierce County,
Washington.

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
Mario Civico, +1-212-908-0796
Media Relations:
Cindy Stoller, +1-212-908-0526

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