The rating on Orange County, Fla.'s bonds reflects the risks of potential future debt issuance secured by sales tax revenues to fund the county's capital improvement program, and the ability to issue variable-rate debt, which could be a concern given the fixed-rate nature of this tax. These risks are substantially mitigated by the following strengths: Excellent growth in the county's half-cent sales tax revenues, rising 80% since 1990 to $84.08 million by fiscal year-end 1998; An increase in distributions to the county, based on a population-driven allocation, currently 71.91%, up from 69.9% in 1988; Strong maximum future debt service coverage of 4.04 times (x) based on 1998 revenues; and The county's strong underlying financial condition highlighted by prudent fiscal management
