The upgrade on Orange County, Fla.'s outstanding sales tax revenue bonds reflects the county's maintenance of strong debt service coverage despite the economic downturn and decline in sales tax receipts post Sept. 11. The rating also reflects: Excellent growth in the county's half-cent sales tax revenues, rising 99.7% since 1992 to $102 million by fiscal year-end Sept. 30, 2001; An increase in distributions to the county, based on a population-driven allocation, currently 72.42%, up from 69.9% in 1988; Strong maximum future debt service coverage of 4.91 times (x) based on 2001 revenues; and The county's strong underlying financial condition highlighted by prudent fiscal management and sufficient operating reserves. These credit strengths are mitigated by the following weaknesses: The risks of
