TEXT-Fitch rates State of Georgia GO bonds 'AAApre'

Thu Feb 7, 2013 4:04pm EST

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(The following statement was released by the rating agency)
    Feb 7 - Fitch Ratings assigns a rating of 'AAApre', Negative Outlook to the
State of Georgia general obligation (GO) bonds, refunded on Jan. 8, 2013,
consisting of:

--$58,650,000 GO refunding bonds 2004C maturing July 1, 2015 - July 1, 2018;
--$113,360,000 GO bonds 2006B maturing March 1, 2022 - March 1, 2024; and
--$199,535,000 GO bonds 2006G maturing Oct. 1, 2019 - Oct. 1, 2024 (the bonds).

The 'AAApre', Negative Outlook rating is based on the pledge of securities in
the escrow deposit fund securing the bonds and reflects the lien of the refunded
bondholders on the escrow trust funds and that all amounts have been invested in
direct non-callable obligations of the United States. The U.S. full faith and
credit rating is currently rated 'AAA', Negative Outlook by Fitch.

Fitch also maintains an unenhanced rating of 'AAA', Stable Outlook on the bonds
based on the GO pledge of the state's full faith and credit (rated 'AAA', Stable
Outlook by Fitch). The bonds remain a general obligation of the state even
though the source of repayment is expected to be the securities in the escrow
deposit fund, further described below. For certain of these maturities, the
'AAA', Stable Outlook rating was incorrectly withdrawn following the refunding.
The unenhanced ratings have been corrected. For more information on the State of
Georgia GO rating, see press release 'Fitch Rates Georgia $583MM General
Obligations 'AAA' Outlook Stable' dated Dec. 6, 2012 available at
'www.fitchratings.com'.

The 2004C bonds were partially refunded with proceeds of the State's GO bonds
2013B. The 2006B and 2006G bonds were refunded with proceeds of the State's GO
bonds 2013C. The ratings apply to the 2004C, 2006B and 2006G bonds listed by
CUSIP numbers, below.

The escrow agent, Bank of New York Mellon Trust Company, N.A., holds two
separate special irrevocable escrow deposit trust funds, one for the benefit of
the 2004C refunded bondholders and one for the benefit of the 2006B and 2006G
refunded bondholders. All cash and securities held in each respective fund are
pledged irrevocably to the payment when due of interest on the refunded bonds
and the payment of principal upon redemption. The refunded 2004C bonds will be
redeemed on July 1, 2014, the refunded 2006B bonds will be redeemed on March 1,
2016, and the refunded 2006G bonds will be redeemed on Oct. 1, 2016, all at a
price of par plus accrued interest.

Samuel Klein and Company verified the mathematical accuracy of computations
relating to the adequacy of income from escrowed funds to pay debt service
requirements of the refunded bonds. These computations were contained in
schedules provided to them by Public Resources Advisory Group, financial advisor
for the refunding bonds. According to the Samuel Klein verification report, the
securities and cash deposited will produce amounts necessary for timely payment
of the principal and interest on the refunded bonds. Prior to accepting
substitute investment securities, the escrow agent must receive a new report
verifying the continued sufficiency of escrowed funds to meet all future
payments of principal and interest on the refunded bonds.

The 'AAApre', Negative Outlook rating applies to the 2004C bonds with the
following CUSIP numbers:

373384D29
373384D37
373384D45
373384D52

The 'AAApre', Negative Outlook rating applies to the 2006B bonds with the
following CUSIP numbers:

373383W53
373383W61
373383W79


The 'AAApre', Negative Outlook rating applies to the series 2006G bonds with the
following CUSIP numbers:

3733833D8
3733833E6
3733833F3
3733833G1
3733833H9
3733833J5


Additional information is available at www.fitchratings.com. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Applicable Criteria and Related Research:
--'U.S. Municipal Structured Finance Rating Criteria' (Feb. 28, 2012);
--'Guidelines for Rating Prerefunded Municipal Bonds' (Dec. 4, 2012).

Applicable Criteria and Related Research:
U.S. Municipal Structured Finance Criteria
Guidelines for Rating Prerefunded U.S. Municipal Bonds

 (New York Ratings Team)
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