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BancorpSouth Insurance Hires Texas Region Marketing Manager Feb 10, 2012 05:40PM

Fitch Rates Roanoke, VA's GO's 'AA+'; Outlook Stable Feb 10, 2012 05:36PM

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings assigns a rating of 'AA+' to the following general obligation (GO) bonds to be issued by Roanoke, Virginia (the city):

--$7,345,000 GO public improvement bonds, series 2012A (tax-exempt);

--$5,855,000 taxable GO public improvement refunding bonds, series 2012B;

--$14,365,000 GO public improvement refunding bonds, series 2012C (tax-exempt).

The bonds are scheduled for competitive sale the week of February 27. The proceeds of the series 2012A Bonds will be used to pay the costs of various public improvement projects. The proceeds of the series 2012B bonds and the series 2012C bonds will be used to advance refund certain outstanding GO bonds for debt service savings.

In addition, Fitch affirms the 'AA+' rating on approximately $196 million of outstanding GO bonds of the city.

The Rating Outlook is Stable.

SECURITY

The bonds will be general obligations of the city, secured by the irrevocable pledge of the city's full faith and credit and unlimited taxing authority.

KEY RATING DRIVERS

ECONOMIC HUB FOR WESTERN VA: Roanoke is a regional economic hub, with a diverse economy that leverages the city's employment sector strengths in health care and transportation. Growing opportunities in biomedical research spearheaded by a joint partnership between Carilion Clinic and Virginia Polytechnic University (Virginia Tech) lend additional employment and income stability.

STABLE FINANCIAL PROFILE: Reserve levels are bolstered following consecutive surplus results from fiscal years 2009-2011. The city targets a 10% set-aside for cash flow and emergency purposes, which Fitch believes provides an adequate cushion at the current rating given the city's other credit characteristics.

AFFORDABLE DEBT POSITION: Debt levels are moderate and servicing costs affordable relative to the operating budget. Additional capital needs and issuance plans are not expected to impact the debt profile given the rapid rate at which existing obligations are amortized.

FUTURE CHALLENGES: Roanoke is a mature community, and economic and tax base expansion opportunities are challenged by the scarcity of developable land. The city is projecting a modest tax base decline in fiscal 2013, the first time in recorded history. Revenue stability may be achieved through adjustment to the property tax rate, although political and economic considerations may serve as a practical impediment. A fairly sizeable and diverse but historically volatile manufacturing sector could stress future unemployment levels.

CREDIT PROFILE

WESTERN VA ECONOMIC ANCHOR

Roanoke is located in rural western Virginia along Interstate 81, at the southern end of the Shenandoah Valley and approximately 170 miles west of Richmond. The city has a stable population of approximately 97,000, making it the largest city in the commonwealth west of the state capital. Roanoke serves as the regional retail, transportation, manufacturing, and healthcare hub, a position bolstered by its location within the crossroads of major highway and rail systems and complemented by its airport.

As the regional center for economic activity, employment opportunities are fairly diverse and the city's unemployment rate continues to track below that of the U.S. at 7.4% in November 2011. The Roanoke region is fairly mature, and growth expectations are modest. Annual employment gains of 1.3% and 1.8% are forecast for the period 2012-2016 by Global Insight and Property and Portfolio Research, respectively.

Income levels for city residents trail those of the wealthy state by a good margin. A low regional cost of living may offset this risk to a degree. The city's low income has not detracted from its retail base, which is anchored by the sizeable 877,000 sq. ft. Valley View Mall, and benefits from a significant student population of more than 91,000 within a 60-mile radius of the city. Retail sales per capita are 160% of the state average.

Manufacturing comprises a sizable 10% of total metropolitan area employment. Sector activity is somewhat diverse including automotive components and freight cars, construction materials, custom power transformers, and plastics, but is volatile nonetheless having declined more than 11% during the 2007 - 2009 calendar years. Modest growth in the sector has been reported since early 2010, allaying near-term concerns.

CARILION CLINIC EXPANSION AND INVESTMENT

Carilion Health anchors a sizeable and stable health service sector. Carilion, which is headquartered in Roanoke, is the city's largest taxpayer (at 2.7% of total assessed value (AV)) and private sector employer (over 2,000 employees).

The 703-bed Carilion Roanoke Memorial Hospital is one of the largest hospitals in the state and recently received a $105 million renovation adding a new emergency department, labor and delivery unit, and children's hospital.

Carilion partnered with Virginia Tech to open a new $59 million school of medicine and research, Virginia Tech Carilion (VTC). VTC has experienced strong demand since enrolling its inaugural class in fall 2010 and there are plans to steadily expand the current scope of research which centers on human brain disorders, cancer and infectious diseases.

MATURE, STABLE TAX BASE

The city's tax base has been fairly stable, benefiting from the absence of speculative building during the housing boom. Assessed value (AV) increased at a compound annual growth rate (CAGR) of 5.6% per year from fiscal 2000 - 2009. Recent success in land reuse and redevelopment, particularly for residential and retail purposes in the city's downtown area, played an important role in these results. Building activity has softened since the recession, slowing AV growth to less than 1% from fiscal 2010 - 2012, and AV is expected to decline modestly for the first time in the city's recorded history in fiscal 2013.

Fitch believes the tax base is likely to remain neutral to slightly positive over the short-term, noting good growth in residential sales prices year-over-year according to Zillow.com, a trend that may reflect the increase in high wage jobs associated with VTC. Office market occupancy rates are reported at close to 95% in the city, exceeding the regional occupancy rate by several percentage points.

STABLE OPERATIONS AND RESERVES GUIDED BY PRUDENT POLICIES

The city concluded fiscal 2011 with a net surplus (after transfers) in the general fund of $1.95 million (or 0.8% of total spending of $256 million). Fiscal 2011 was the third consecutive year a net surplus was recorded. During this period, the year-end unrestricted fund balance (the sum of the unassigned, assigned, and committed fund balance under GASB 54) improved to $26.9 million or 10.5% of spending from $19.7 million or 7.6% of spending. Recently adopted fiscal policies target a 10% reserve for working capital/emergency purpose.

By policy the city adopts a balanced budget excluding the use of one-time measures or existing fund balance. The fiscal 2012 budget, which totals $258.7 million or a 2.1% increase from fiscal 2011, is performing on target based on mid-year results presented by management, as such the city expects close to break-even operations at year-end.

The general fund budget is supported by a diverse resource mix led by property taxes at 40% of total revenue. Property taxes are generally very stable and derived from a diverse tax base with excellent collection rates.

Following real property tax base growth of 4% to 9% per annum from fiscal 2001 - 2007 the city is projecting a decline of 1.2% in fiscal 2013. The city's tax rate and levy is not subject to statutory or charter limitation or cap, affording the city the ability to offset AV declines and maintain revenue stability. The tax rate has been flat or has declined each year since at least fiscal 2002, and at $1.19 per $100 of assessed value (AV) is slightly higher compared to several city/county rates in the region.

The remainder of discretionary general fund revenue is largely derived from a mix of broad-based taxes including sales tax (7%), utility tax (4%), occupational tax (5%), food and beverage tax (6%) and telecommunications tax (3%). The city essentially has no independent rate setting authority with respect to these sources. Although these revenues are potentially volatile given their consumption based nature, the city's revenue forecasting has proved fairly accurate in recent fiscal periods, and the continued maintenance of solid reserve levels offers a cushion in the event of an unanticipated decline in collections.

AFFORDABLE DEBT LEVELS EXPECTED

Debt is presently affordable, and expected to remain so going forward. Debt servicing costs total $31.4 million in fiscal 2012 or approximately 11% of the combined general fund and debt service fund budgets. Outstanding debt equals 3.1% of market value or $2,711 per capita, ratios considered moderate by Fitch.

The 2012 - 2016 capital improvement program (CIP) totals $79.6 million or 0.9% of market value. The CIP will be largely financed with additional debt. Fitch does not expect any impact on credit quality due to the additional borrowing given the city's aggressive retirement of outstanding obligations. The city is scheduled to repay more than 70% of outstanding principal over the next 10 years.

Pension and retiree health costs consume a manageable share of city resources (approximately 5% of annual spending). Pension plans are satisfactorily funded. The city expects to adopt several pension reforms to help sustain the financial health of its program going forward. The city does not have exposure to variable rate debt or derivative products.

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.

In addition to the sources of information identified in Fitch's Tax-Supported Rating Criteria, this action was additionally informed by information from Creditscope, University Financial Associates, S&P/Case-Shiller Home Price Index, IHS Global Insight, Zillow.com, National Association of Realtors, and Property and Portfolio Research.

Applicable Criteria and Related Research:

--'Tax-Supported Rating Criteria' (Aug. 15, 2011);

--'U.S. Local Government Tax-Supported Rating Criteria' (Aug. 15, 2011).

Applicable Criteria and Related Research:

Tax-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648898

U.S. Local Government Tax-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648842

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. 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 RatingsPrimary AnalystMichael Rinaldi, +1-212-908-0833Senior DirectorFitch, Inc.One State Street PlazaNew York, N.Y. 10004orSecondary AnalystEvette Caze, +1-212-908-0376DirectororCommittee ChairpersonAmy Laskey, +1-212-908-0568Managing DirectororMedia Relations:Sandro Scenga, +1-212-908-0278Email: sandro.scenga@fitchratings.com

Source: Fitch Ratings

Photo Release -- Travis Street Plaza, LP Celebrates Groundbreaking for New Housing Community Feb 10, 2012 05:34PM

HOUSTON, Feb. 10, 2012 (GLOBE NEWSWIRE) -- Mayor Annise Parker along with state and local officials joined representatives of Cloudbreak Houston, LLC, Travis Street Plaza LP, National Equity Fund, Inc., Amegy Bank of Texas, the Federal Home Loan Bank of Dallas (FHLB Dallas), United States Veterans Initiative, and the Department of Veteran Affairs on Thursday, February 9, 2012, to celebrate the groundbreaking for Travis Street Plaza, a new 192-unit permanent housing community for homeless and disabled veterans near downtown Houston.

Officials gathered yesterday to celebrate the groundbreaking of Travis Street Plaza, a 192-unit permanent housing facility for homeless and disabled veterans near downtown Houston.

A photo accompanying this release is available at http://www.globenewswire.com/newsroom/prs/?pkgid=11627

The cost of the project totals approximately $18 million, and Amegy Bank is the lead lender. Amegy Bank also partnered with FHLB Dallas to award a $500,000 Affordable Housing Program (AHP) grant to assist with construction of the project. National Equity Fund, Inc. provided more than $11 million in low-income housing tax credit equity on behalf of nine investors, and the City of Houston Housing and Community Development Department provided more than $5.7 million in grant and bond funds. 

"This is more than just a housing complex, but a fully integrated community providing the supportive services, counseling, and job training programs that veterans need and deserve," said City of Houston Mayor Annise Parker.  "It's through partnerships between the private, public, and nonprofit sectors that will enable Travis Street Plaza to support Houston's homeless veterans transition to an independent life of self sustainability."

Developed by Cloudbreak Communities, construction has begun on the five-story apartment community which will serve in addition to the existing 286-unit facility that is already operating on the adjacent property. The existing facility, Midtown Terrace, was converted from a Days Inn Motel and provides short- and long-term transitional housing for veteran residents. 

The partnership with National Equity Fund, Inc. was a critical component in funding Travis Street Plaza.

"We are committed to supporting efforts that go beyond shelters and short-term transitional housing for homeless veterans," said Joe Hagan, National Equity Fund, Inc. president and chief operating officer. "And, we are proud to be part of Travis Street Plaza as a permanent housing solution with access to critical supportive services for the men and women who have served our country."

The new facility will contain 192 units and will provide subsidized permanent housing for homeless and disabled veterans. Residents will have access to supportive services, such as counseling, medical care, job training, and mental health services provided by DVA, USVETS, Goodwill of Greater Houston, Houston Volunteer Lawyers Program, and other local service providers. Veterans will access HUD/VASH Housing Vouchers through the City of Houston and Harris County Housing Authorities. Travis Street Plaza plans to open by the end of 2012.

"Travis Street Plaza is another step in Cloudbreak Communities' multi-decade vision to add new permanent supportive housing around its already existing veteran facilities that are providing entry level programs and services along with transitional and permanent housing," said Thomas R. Cantwell, manager of Travis Street Plaza, LP. "This development will provide urgently needed housing for Houston-area veterans building upon Cloudbreak Houston, L.L.C's Midtown Terrace Suites, which currently houses nearly 300 vets."

Amegy Bank has been a tremendous partner and advocate of Travis Street Plaza, LP, and along with providing financing for the project, Amegy Bank utilized the FHLB Dallas AHP grant program for additional funding. Since 2005, Amegy Bank has awarded approximately $4 million in AHP grants to Houston area projects. Each year, Amegy Bank works diligently to partner with dedicated organizations that are committed to providing quality housing and services to the community.

"Amegy Bank supports Travis Street to help address the community's critical housing need for veterans and to further Travis Street's goal to provide social services and workforce training for veterans who have been misplaced or recently returned from war," said  Senior Vice President and Community Banking Manager Brian Stoker.  "We believe that it is our responsibility to support the communities that we serve, and we appreciate having the opportunity to help address the diverse affordable housing needs throughout Houston and the Texas area."   

AHP grants are awarded through FHLB Dallas member financial institutions, such as Amegy Bank, to assist in the development of affordable, owner-occupied and rental housing for very low- to moderate-income households. In 2011, FHLB Dallas awarded $11 million in AHP funding to 53 projects across its five-state District of Arkansas, Louisiana, Mississippi, New Mexico, and Texas. The funding will result in the creation or rehabilitation of 1,653 housing units across the District.

About National Equity Fund

National Equity Fund, Inc. is a nonprofit syndicator of LIHTCs connecting private capital to long-term affordable rental housing investments. With its 2011 activity - $833 million equity investments for new construction and rehab projects creating 8,100 jobs - NEF now counts 2,100 LIHTC projects under management, with $9.5 billion invested. 

About the Federal Home Loan Bank of Dallas

The Federal Home Loan Bank of Dallas is one of 12 district banks in the FHLBank System created by Congress in 1932.  FHLB Dallas, with total assets of $31.4 billion as of September 30, 2011, is a member-owned cooperative that supports housing and community development by providing competitively priced advances and other credit products to more than 900 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico, and Texas.  For more information about FHLB Dallas and its programs, please visit fhlb.com.

The Federal Home Loan Bank of Dallas logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3013

The photo is also available via AP PhotoExpress.

CONTACT: Corporate Communications
         Federal Home Loan Bank of Dallas
         www.fhlb.com
         (214) 441-8445

Source: Federal Home Loan Bank of Dallas

Dynasty Financial Partners Honored as Best Newcomer – Advisory Consulting by Private Asset Management Magazine Feb 10, 2012 05:28PM

NEW YORK--(BUSINESS WIRE)-- Dynasty Financial Partners, a leading provider of research, infrastructure and best in class investment platforms for independent financial advisors, announced today that it was named Best Newcomer - Advisory Consulting at the 2012 Private Asset Management Awards (“PAM Awards”) held on Tuesday in New York. In its first year in business, Dynasty Financial Partners was nominated for three separate award categories including Private Client Investment Platform – Innovation and Outstanding Contribution.

“It is tremendously gratifying to see the results of our team’s hard work acknowledged by PAM Magazine,” said Shirl Penney, President and CEO of Dynasty Financial Partners. “I am proud that we have been recognized for what we have created and it confirms how important this model will be to the future of the industry.”

About Dynasty Financial Partners

Dynasty Financial Partners develops, sources and integrates the finest capabilities for the industry’s leading independent investment advisor teams - without limitations or conflicts. Dynasty offers a customized open-architecture platform of the finest wealth management solutions and technology to help independent advisors best protect and grow their clients’ wealth. Dynasty’s core principle is “objectivity without compromise,” and the firm is committed to crafting solutions that allow investment advisors to act as true fiduciaries to their clients. For more information, please visit www.dynastyfinancialpartners.com.

About the PAM Awards

The PAM Awards are awarded annually by Private Asset Management, a financial services industry trade magazine. The PAM Awards invite firms to compete for awards in several categories by providing answers regarding their business model, services offered, growth in client count and assets managed, countries of operation, service innovation and performance. A panel of independent industry experts selects the nominees and winners based on a number of qualitative and quantitative performance indicators.

http://www.pammagazine.com/event/pam-2012-awards

for Dynasty Financial PartnersGerard Carney, 212-453-2000gerard.carney@fleishman.com

Source: Dynasty Financial Partners

Fitch Affirms Imperial Irrigation Dist, CA Water COPs at 'AA-'; Outlook Stable Feb 10, 2012 05:23PM

SAN FRANCISCO--(BUSINESS WIRE)-- Fitch Ratings affirms the following rating for the Imperial Irrigation District, California (IID) as part of its continuing surveillance:

--$35.8 million revenue certificates of participation (COPs), series 2004, at 'AA-'.

The Rating Outlook is Stable.

SECURITY

Water revenue COPs are secured by net revenues of IID's water system.

KEY RATING DRIVERS

EXCEPTIONALLY STRONG WATER RIGHTS: The district has superior water rights to a very large volume of the state of California's allocation of Colorado River water that is used to serve the region's irrigation needs.

DIVERSIFICATION IN WATER SALES: IID makes water sales outside the traditional service area that are under contract through 2047, resulting in revenue diversity with around half of system revenues provided by IID's traditional irrigation customers and the other half provided by water sales outside the region and falling water charges from IID's power system.

WATER SALES AT FIXED PRICES: The Quantification Settlement Agreement (QSA) provides IID a highly stable and certain revenue stream and a 2009 Settlement Agreement with the San Diego County Water Authority (SDCWA) increased pricing which, over time, is anticipated to offset needed rates from irrigation customer and fund system capital needs.

SIGNIFICANT CAPITAL NEEDS: Fitch anticipates significant capital spending in the next five years to build mandatory conservation projects, which could place strain on the system's resources and financial position.

LIMITED RATE FLEXIBILITY: Very low water rates to the district's irrigation customers at $20 per acre-foot provide the region with a competitive advantage to other agricultural areas in the state. However, IID appears to have very limited rate flexibility given strong customer protest voiced in 2009.

IMPROVED AND ADEQUATE FINANCIAL POSITION: The financial position became strained over the past few years with reliance on one-time sources to meet rate covenant requirements. The 2009 settlement agreement revenues and a decrease in debt service resulting from the prudent cash defeasance of debt, improved cash flow in fiscal 2010. Future financial performance will depend, in large part, on the structure and timing of new debt.

GOVERNANCE CONCERNS: Frequent senior management turnover at the district has been a credit concern given the long-term capital needs that are required to comply with the QSA.

WHAT COULD TRIGGER A RATING ACTION

CAPITAL INVESTMENT NOT DISCRETIONARY: The district's completion of the conservation projects over the next five years is important in that if conservation water is not available to meet required transfers, IID would have to reduce water sales to its irrigations customers, which would be highly unpopular and potentially damaging to the regional economy.

ADDITIONAL DEBT ISSUANCE: Costly required conservation projects are expected to result in additional borrowing, the structure and timing of which is presently unclear. While the growing revenues from water transfers appear overall to be sufficient to support the increasing debt burden, decisions regarding the structure of the new debt may impact financial margins for existing bondholders and, perhaps, credit quality.

CREDIT PROFILE

STRONG WATER RIGHTSImperial Irrigation District is located in southeastern California, near the borders of Mexico and Arizona. The district enjoys a 3.1 million acre-feet entitlement to flows from the Colorado River and delivers approximately 2.4 million acre-feet of raw water to irrigation customers in the Imperial Valley, where a tremendous amount of California's agricultural activity takes place.

The Imperial Valley economy is linked to that of Mexicali, MX, located just south of the service area. The economy has been seriously affected by the economic downturn. The district's water rights to a share of California's apportionment of the Colorado River are plentiful and superior to many in the state, including the water rights of Metropolitan Water District of Southern California, used to serve the urban Los Angeles and San Diego areas.

WATER TRANSFER SALE OBLIGATIONSIn a broad regional agreement signed in 2003, the QSA, the district agreed to execute substantial conservation projects that would generate water to be sold to other regional entities to meet population growth. IID is poised to embark on a sizable capital program to implement the long-term conservation projects needed to meet the required deliveries to SDCWA and CVWD that grow to 278,000 acre-feet by 2021.

In the interim period, the district is meeting initial water transfer sale requirements through land fallowing programs with Imperial Valley farmers. Financial pressure could result in the interim period since IID must spend capital dollars to construct conservation projects, but the bulk of revenues from these projects will be generated a number of years after construction is complete. IID is expected to debt finance the majority of project costs in addition to $50 million in up-front capital funds provided by a 2009 settlement agreement with SDCWA.

IID is required as part of the QSA to transfer increasing amount of water to SDCWA and CVWD. The transfers began in 2004 and ramp up to a flat annual level of 200,000 af in 2021. Deliveries to CVWD increase to a maximum of 103,000 in 2026 and deliveries to both entities continue through 2047. Prices for the water transfers to SDCWA and CVWD are fixed under certain agreements with the entities.

In addition, IID is required to transfer 'mitigation' water to the Salton Sea through 2017. However, IID has petitioned the state for the ability to sell the mitigation water to other regional entities and use the resulting funds for alternative mitigation efforts related to the Salton Sea. This type of change, should it occur, is considered neutral from a revenue and credit perspective.

CAPITAL NEEDS WILL INCREASE DEBTIID expects to complete approximately $293 million in capital projects overall in the next five years, with $216 million related to conservation requirements. Funding will include $50 million provided by SDCWA and bond proceeds. Management is considering the use of parity or subordinate bonds but to date, a structure has not been determined.

The approximately $223 in additional debt estimated over the next five years will represent a substantial increase to the district's existing $124 million in outstanding debt, as of Dec. 31, 2010, including pension obligation bonds and commercial paper. Existing debt was reduced by around $50 million in 2010 when land sale proceeds were used to cash defease early maturities of the outstanding 2004 COPs, the original proceeds of which were used to purchase the land. The defeasance provides some capacity for the additional debt anticipated.

FINANCIAL PERFORMANCE IMPROVED IN 2010IID's financial performance in fiscal years 2007 through 2009 was slim and debt service coverage was aided by revenues provided by one-time land sales and settlement payments, which were included in 'revenues' for purposes of the rate covenant calculation.

Fiscal 2010 performance was helped by the implementation of two of three rate increases approved in 2009, a substantial reduction in debt service as a result of debt refundings and the cash defeasance in that year. Water transfer sales also increased considerably in fiscal 2009, aiding financial performance. Debt service coverage in fiscal 2010 was 3.5 times (x) and unrestricted cash balances remained healthy, even after the defeasance, with $100 million in cash, or 380 days operations.

Future financial performance is expected to remain in line with 2010 performance although with lower debt service coverage as additional debt is issued. Management's informal policy is to maintain debt service coverage of at least 2.0x. Revenues are expected to increase in future years as a result of increased water transfer sales to SDCWA and CVWD. Salton Sea mitigation revenues provided by a regional JPA will also increase, although these revenues are a direct reimbursement for incurred expenditures. Expenditures will also increase significantly as operational costs increase related to the new capital investments anticipated and related to the previously mentioned Salton Sea mitigation costs.

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:--'Revenue-Supported Rating Criteria', dated June 20, 2011;--'Water and Sewer Revenue Bond Rating Guidelines', dated Aug. 10, 2011.

Applicable Criteria and Related Research:Revenue-Supported Rating Criteriahttp://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=637130U.S. Water and Sewer Revenue Bond Rating Criteriahttp://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647331

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. 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 RatingsPrimary Analyst:Kathy Masterson, +1-415-732-5622Senior DirectorFitch, Inc.650 California StreetSan Francisco, CA 94008orSecondary Analyst:Douglas Scott, +1-512-215-3725Managing DirectororCommittee Chairperson:Mike Rinaldi, +1-212-908-0833Senior DirectororMedia Relations:Sandro Scenga, +1-212-908-0278sandro.scenga@fitchratings.com

Source: Fitch Ratings