Fitch Rates Guilford County, North Carolina $183.22MM 2005A&B VRGOs 'AA+/F1'

Business Wire, Jan 25, 2005

NEW YORK -- Fitch Ratings assigns the rating of 'AA+/F1' to the $183,220,000 County of Guilford, North Carolina, variable rate general obligation bonds consisting of

-- $9,220,000 series 2005A bonds;

-- $174,000,000 series 2005B bonds.

The 'AA+' is based on the County of Guilford's long-term general obligation bond rating. The series 2005A bonds mature on March 1, 2020, and the series 2005B bonds mature on March 1, 2025.

The short-term 'F1+' ratings assigned to the series 2005A and B bonds is based on the support of two liquidity facilities, each in the form of a standby bond purchase agreement (SBPA) and supporting a respective series of bonds, provided by Wachovia Bank, N.A. The SBPAs provide for the payment of the purchase price of each series of bonds in an amount equal to the principal portion of the purchase price and up to 35 days of interest on the bonds at the maximum rate of 12%. The SBPAs will expire on the earlier of Feb. 15, 2010, the scheduled expiration date, or the occurrence of certain events of termination, all in accordance with the terms of the SBPAs. The underwriter and remarketing agent is Banc of America Securities LLC. Both series of bonds are expected to be delivered on or about Feb. 3, 2005.

Each series of bonds will be issued in the weekly rate mode, but may be converted to a short-term interest rate consisting of bond interest terms or a long-term interest rate mode. While in the weekly interest rate mode, interest will be paid on the first business day of each month, commencing March 1, 2005. Series 2005A and 2005B bondholders have the right to tender their bonds on any business day, following seven days' prior notice to the remarketing agent and the tender agent. Conversion to a different interest rate mode will be preceded by a mandatory tender. In addition, the bonds of both series are subject to mandatory tender upon expiration or termination of the respective SBPA and upon any substitution of the SBPA supporting such series of bonds that results in a reduction or withdrawal of the current ratings on the bonds. Bonds are also subject to optional and mandatory redemption pursuant to the terms of the resolution.

Proceeds of the Series 2005A and 2005B bonds will be used to

-- Pay the costs of certain governmental facilities, including public buildings, park and recreational facilities, community college and school facilities;

-- To pay costs incurred in connection with the issuance of the series 2005A and 2005B bonds.