Fitch Rates Palm Beach County, FL's $71.0MM Water & Sewer Rev Bonds 'AAA'; Outlook Stable

NEW YORK--(Business Wire)--
Fitch Ratings assigns an 'AAA' rating to Palm Beach County, Florida's $71.0
million water and sewer revenue bonds, series 2009. The bonds are expected to
price in July via negotiation. Proceeds will be used to finance the expansion of
the system's reclaimed water system. Fitch also affirms the 'AAA' rating on the
system's approximately $175.5 million in outstanding water and sewer revenue
bonds. The Rating Outlook is Stable.

The 'AAA' rating reflects the system's strong financial management evidenced by
sound coverage levels, low rates, and solid legal provisions. The system's
manageable future capital needs, ample treatment capacity, and robust service
area are also factored into the rating.

Coverage levels have historically been strong exceeding 2.0 times (x) since
1986. Fiscal 2008 results show 2.28x coverage including connection fees.
Projections show coverage increasing to 5.19x in fiscal 2015 due to a
combination of moderate projected rate increases and decreasing debt service
costs. Cash levels have declined over the last five years from 887 days cash on
hand in fiscal 2003 to a still healthy 313 in fiscal 2009 as capital projects
have been cash funded. Cash is expected to remain ample through the forecast
period. Despite recent rate increases, rates continue to be low for the region
providing additional financial flexibility.

The system currently receives raw water from the Biscayne and Turnpike aquifers
and owns and operates six water treatment plants with combined maximum permitted
treatment capacity of 114.39 million gallons per day (mgd). Capacity remains
ample with 53% remaining. The system owns and operates one wastewater treatment
plant and is party to another wastewater treatment plant operated by the City of
West Palm Beach. The system's combined maximum treatment capacity at both plants
is 58.5 mgd, well above the average flow of 38.5 mgd in fiscal 2008. The current
issuance makes up the largest portion of the system's $355.9 million capital
improvement plan for fiscal years 2009-2013. No additional debt is expected in
the next five years.

Palm Beach County remains one of the nation's wealthiest counties, with per
capita income levels 51% higher than the state and national averages. In
addition, the economic base is diverse, balancing tourism and technology
manufacturing in the coastal areas with agriculture in the western portion of
the county.

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
Rachel A. Barkley, 212-908-0514
Michael Rinaldi, 212-908-0833
or
Media Relations:
Cindy Stoller, 212-908-0526
Email: cindy.stoller@fitchratings.com

Copyright Business Wire 2009