The rating on Orange County, Fla.'s bonds reflects 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 65% since 1990 to $76.84 million by fiscal year-end 1997; * Rising distributions to the county based on a population-driven allocation, currently 71.54%, up from 69.9% in 1988; * Coverage of maximum future debt service of 3.59 times (x) based on 1997 revenues; and * The county's strong underlying financial condition, highlighted by prudent fiscal management and
