Fitch Rates Johnson County, KS' GO Bonds 'AAA' & Johnson County Pub Building Commission Revs 'AA+'

NEW YORK--(Business Wire)--
Fitch Ratings assigns its 'AAA' rating to the following Johnson County, Kansas
(the county) bonds:

--$9.01 million internal improvement refunding bonds, series 2010A;

--$4.62 million library improvement refunding bonds, series 2010B.

Fitch also rates the following Johnson County Public Building Commission, Kansas
(the PBC) bonds 'AA+':

--$13.245 million taxable lease purchase revenue bonds, series 2010A;

--$6.34 million lease purchase revenue refunding bonds, series 2010B;

--$31.945 million lease purchase revenue refunding bonds, series 2010C.

The bonds are expected to sell via competitive sale on April 29, 2010.

In addition, Fitch affirms the following Johnson County, Kansas bonds at 'AAA':

--$20.925 million outstanding internal improvement bonds, series 2009B;

--$16.855 million outstanding internal improvement refunding bonds, series
2009C.

The Rating Outlook is Stable.

Fitch will recalibrate the ratings on the above referenced bonds on April 30,
2010 as described in the March 25, 2010 report 'Recalibration of U.S. Public
Finance Ratings', available at 'www.fitchratings.com'. At that time the ratings
will be revised as described below.

--The ratings on the county series 2009B, 2009C, 2010A and 2010B will remain
'AAA' with a Stable Outlook.

--The ratings on the PBC series 2010A, 2010B, and 2010C bonds will remain 'AA+'
with a Stable Outlook.

RATING RATIONALE:

--Johnson County is an affluent, well-educated community located proximate to
Kansas City.

--The county's local economy is deep and diverse, further augmented by numerous
career opportunities throughout the Kansas City metropolitan region.

--Residents display an above average socioeconomic profile.

--The county continues to generate operating surpluses and strong financial
margins despite the current economic recession.

--Officials have demonstrated consistent judicious financial supervision.

--The overall debt burden is manageable and amortizes fairly quickly; coupled
with a supportable five-year capital improvement plan.

RATING DRIVERS:

--The county's ability to maintain strong financial flexibility given projected
declines in assessed valuation coupled with the general malaise of the current
economic environment.

--The county's ability to swiftly reduce expenditures if potentially volatile
sales and use tax revenue sources decline precipitously.

SECURITY:

The county series 2010A bonds are valid and binding general obligations (GO) of
the county payable from its ad valorem tax, without limitation as to rate or
amount, on all taxable property within the county.

The county series 2010B bonds are valid and binding GOs of the county payable
from it ad valorem tax, without limitation as to rate or amount, on all taxable
property within the county except within the Cities of Olathe and Bonner
Springs, which together account for 17.1% of the county's total assessed
valuation.

The PBC bonds are special obligations payable solely from lease payments made by
Johnson County from any legally available funds. The county's obligation is
absolute and unconditional without abatement, set-off or counterclaim. The
obligation is not subject to annual appropriation. The lease shall not terminate
so long as bonds are outstanding.

CREDIT SUMMARY:

Johnson County, Kansas is advantageously located 12 miles southwest of the City
of Kansas City, providing easy access to numerous employment opportunities
throughout the metropolitan region. The county's own local economy is deep and
diverse, anchored by telecommunications firms such as Sprint Corporation and
Century Link - which together employ roughly 11,000 people - healthcare,
government, and engineering services. Johnson County is home to the corporate
headquarters of Applebee's International, Garmin Ltd., Black & Veatch, and
Sprint Corporation. The county's population has grown 21.5% since 2000, and as
of 2009 totaled 548,122, making Johnson County the most populous county in the
state. Wealth levels are above average with 2008 county per capita income levels
equaling 146% and 138% of the state and national averages, respectively. The
county's residents are well-educated with 51% achieving higher education verse
27% for the national average.

Historically, Johnson County had experienced consistent assessed valuation
growth; however, such growth has tapered off recently given the national
recession. Assessed valuation declined 3.2% in 2010, and is projected to decline
5.6% in 2011, and between 2%-4% in 2012. Thereafter, a positive trend is
projected. Despite the wobble, full market value is still substantial at over
$63.2 billion or $115,319 per capita. Also, the county continues to experience
new construction growth, albeit at a much lower rate. As housing prices did not
experience unsustainable increases during the boom years, the prices are also
not experiencing dramatic declines. As a result, county residential foreclosure
rates are conspicuously below the national average.

The county consistently has maintained substantial financial reserves, providing
the necessary cushion to withstand near-term economic and financial uncertainty.
The county has a formal fund balance policy to maintain at least a 10% to 15%
unreserved general fund balance, a percentage the county presently far exceeds.
For fiscal 2008, the county ended the year with an $81.6 million unreserved
general fund balance or 31% of spending. Preliminary unaudited fiscal 2009
numbers indicate the county ended the year with a 4.2% general fund operating
surplus and increased its total general fund balance to $102.3 million or 41% of
spending. Despite a 5.3% decline in general fund revenues from the year prior,
the county was able to achieve the operating surplus through various cost
savings measures including foregoing merit raises, not filling vacant positions,
and reducing capital spending. Prospectively, the county is anticipating
balanced operations for fiscal 2010 through further expenditure reductions as
its primary means of balancing the budget. The county is considering drawing
down its ample fund balance in out-years, however, in all cases plans to
maintain at least a 20% unreserved balance. Historically the county experienced
consistent robust growth in property tax and sales tax revenues, so accompanying
expenditure increases were not a concern. Given the current environment, the
county is closely scrutinizing its expenditure efficiencies and staffing
requirements.

Johnson County's overall net debt burden is manageable at $4,136 per capita or
3.6% of true value, with the majority of debt attributable to overlapping school
districts. Direct debt is a minuscule $356 per capita or 0.3% of true value. The
county's five-year capital improvement plan is moderate at $100 million, of
which 60% is anticipated to be issued as self-supporting wastewater debt. Of a
more uncertain nature, the county is considering issuing upwards of $300 million
for a new county courthouse. However, the size of the plan is scalable and is
not expected to occur for at least another four years. Proceeds for the county
series 2010A transaction will be used to currently refund series 2002A bonds for
a cost savings. Proceeds for the county series 2010B transaction will be used to
currently refund series 1998B, series 2001B, and series 2002C bonds for a cost
savings. Proceeds for the PBC series 2010A transaction will be used to construct
a new public works facility. Proceeds for the PBC series 2010B transaction will
be used to currently refund series 2002A and series 2002B bonds for a cost
savings. Proceeds for the PBC series 2010C transaction will be used to crossover
refund series 2003A and 2004A bonds for a cost savings.

Applicable criteria available on Fitch's website at 'www.fitchratings.com'
include:

--'Tax-Supported Rating Criteria' (Dec. 21, 2009);

--'U.S. Local Government Tax-Supported Rating Criteria' (Dec. 21, 2009).

Additional information is available at 'www.fitchratings.com'.

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PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING
DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S
PUBLIC WEBSITE '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
James Mann, 212-908-9148, New York
Dana Sodikoff, 312-368-3215, Chicago
or
Media Relations:
Cindy Stoller, 212-908-0526, New York
Email: cindy.stoller@fitchratings.com

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