Fitch Places Louisiana CDA (Bossier City Public Improv Projs) 2007 Revs on Watch Negative

NEW YORK--(Business Wire)--
In the course of routine surveillance, Fitch Ratings has placed on Rating Watch
Negative the Louisiana Local Government Environmental Facilities and Community
Development Authority's $98.4 million in outstanding Bossier City Public
Improvement Project Revenue Bonds, series 2007 (rated 'A-'). The Rating Watch
Negative is expected to be resolved following receipt and review of the issuer's
audit for financial year ending Dec. 31, 2008.

The Rating Watch Negative reflects concerns that there will be significant
draw-downs in Bossier City's (the city) general fund balance. The city has
budgeted drawdowns of $4.2 million in 2008 and $4.6 million in 2009, which would
cut general fund reserves from $12.2 million at year-end 2007 to $3.4 million by
the close of 2009. While the city has historically performed well above budget,
Fitch is concerned that given the current economic recession, operations in 2008
and 2009 may be affected by a decline in gaming revenues, which made up 15.3% of
the city's 2007 governmental fund revenues. Based on first-quarter trends,
gaming revenues are expected to fall for a second consecutive year in 2009, to a
level 6.1% lower than when the bonds were issued in 2007. Fitch is also
concerned because the bonds' debt service reserve requirement is funded by a
surety bond from Ambac Assurance Corp, whose insurer financial strength was
rated 'AAA' at the time the bonds were issued, but has deteriorated considerably
and is now no longer rated by Fitch.

The bonds are limited obligations of the Louisiana Local Government
Environmental Facilities and Community Development Authority, payable from and
secured by payments from the city. The city has pledged its lawfully available
funds as security, but not its full faith and credit. The city designates, but
does not pledge, gaming revenues from its three riverboat casinos as the primary
source to pay debt service. The city's other debt is backed by sales taxes or
other revenue sources.

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
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Conduct' section of this site.

Fitch Ratings
Tom Cowell 212-908-9130, New York
Andy Kaaz, 512-215-3730, Houston
or
Media Relations:
Cindy Stoller, 212-908-0526, New York
Email: cindy.stoller@fitchratings.com

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