Fitch Affirms City of Bradenton, Florida Special Obligation Revs at 'A+'

NEW YORK--(Business Wire)--
As part of ongoing surveillance, Fitch Ratings has affirmed the 'A+' rating on
the City of Bradenton, Florida's (the city) $18,310,000 special obligation
revenue bonds, series 2007 (the bonds). The Rating Outlook is Stable.

The city has covenanted to appropriate in its annual budget non-ad valorem
revenues sufficient to pay debt service on the bonds, after taking into
consideration certain pledged sales tax revenues distributed to the city under
the state's retained spring training franchise incentive program. The bonds were
issued to fund improvements to McKechnie Stadium, the spring training home of
Major League Baseball's Pittsburgh Pirates.

The 'A+' rating is based on the city's conservative financial management and
robust reserve levels resulting in ample financial flexibility, a moderate debt
burden with no additional borrowing plans which is balanced against a limited
economy with very high unemployment, a severely stressed regional housing
market, and below average wealth levels. The rating also considers the pledged
sales tax revenue from the state, which covers approximately 45% of the annual
debt service on the bonds through final maturity.

Substantially all of the city's outstanding debt is backed by a covenant to
budget and appropriate non-ad valorem revenues to pay debt service. The city
does not have general obligation debt outstanding. The city's debt burden
remains moderate at 2.7% of taxable assessed value (TAV) or nearly $1,900 per
capita. Annual debt service requirements, excluding parking notes issued by the
city but paid by the county pursuant to an inter-local agreement, account for
approximately 5% of the total governmental fund revenues. Capital needs are
minimal, owing in part to the city's largely developed nature.

The city has conservatively built reserve levels partially due to the risk
inherent in its proximity to the Gulf of Mexico and associated severe weather
events. The city completed fiscal 2008 with a general fund unreserved fund
balance of $17.9 million or 46% of total spending. The city also reported $14.3
million in unrestricted reserves within various special revenue funds that are
generally earmarked for non-recurring costs including pay-go capital, but could
be used to support general government spending if necessary. The fiscal 2009
budget cut spending by 4% from the year prior with cost savings primarily
achieved by staff reductions and eliminating non-union wage increases. According
to the city the budget is essentially on target through the first six months of
2009. A modest general fund deficit of $200,000 to $400,000 is anticipated at
year end. The city's robust reserves provide a level of financial flexibility
not enjoyed by most municipalities; however, rating pressure may develop if the
recent decline in the city's revenue base persists or accelerates beyond
reasonable expectations.

Bradenton is a mature, fairly developed city located in Manatee County (general
obligation bonds rated 'AA+' by Fitch, with a Stable Rating Outlook) on
Florida's Gulf Coast, approximately 45 miles south of Tampa. The
Sarasota-Bradenton metropolitan statistical area (MSA) is among the hardest hit
housing markets with foreclosure rates above the state average. Employment
within the construction and professional and business services sectors, once
catalysts for growth in the MSA, has declined 32% and 13% since 2006,
respectively. The city's unemployment rate has risen sharply to 10.4% in March
2009, above the state and national average. Per capita income levels are 89% of
the state and national average.

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
Michael Rinaldi, +1-212-908-0833
Ryan Greene, +1-212-908-0315
Media Relations:
Cindy Stoller, +1-212-908-0526
cindy.stoller@fitchratings.com

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