Fitch Rates The School Board of Orange County, Florida's $51MM COPs 'A+/F1+'

NEW YORK--(BUSINESS WIRE)--Fitch assigns a 'A+/F1+' rating to The School Board of Orange County, Florida $51,020,000 Certificates of Participation (the COPs), Series 2008E. The rating is based on the support provided by a direct-pay letter of credit (LOC) issued by Wachovia Bank, N.A. (the Bank), securing the COPs. The Bank is obligated to make payments of principal and interest on the COPs upon maturity, acceleration and prepayment, as well as the purchase price for tendered COPs.

The rating will expire upon the earliest of: Sept. 8, 2009, the stated expiration date of the LOC, unless such date is extended; any prior termination of the LOC; and defeasance of the COPs. The LOC provides full coverage of principal plus an amount equal to 35 days' interest at a maximum rate of 12% based on a 365-day year and purchase price for tendered COPs. The Remarketing Agent for the COPs is Wachovia Bank, N.A.

The COPs initially bear interest at the daily interest rate, but may be converted to a weekly, long-term, or ARS rate. While COPs bear interest in the daily mode, interest payments are the first day of each month, commencing October 1, 2008. Bondholders may tender their COPs on any business day, provided the trustee is given prior notice of the purchase demand. The COPs are subject to mandatory tender on any conversion date, five business days prior to the stated expiration or termination date of the LOC (unless the LOC has been extended or an alternate LOC has been delivered), upon purchase in lieu of prepayment with ten days prior written direction to the trustee, or at the direction of the bank no later than ten days after the trustee's receipt of an event of default under the LOC agreement. Optional prepayment provisions also apply to the COPs.

Bond proceeds will be used to refund the School Board's outstanding COPs, Series 2007-C and refinance a portion of the lease-purchase of educational facilities and related furniture, fixtures and equipment leased to the School Board.

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