Fitch Rates Parish of East Baton Rouge $93.4MM Sales Tax Revs Series 2008A 'AAA/F1+'

Business Wire, April 7, 2008

NEW YORK -- Fitch Ratings assigns a rating of 'AAA/F1 ' to the $93,440,000 the Parish of East Baton Rouge, Louisiana, Road and Street Improvement Sales Tax Revenue Refunding Bonds, Series 2008A. The long-term 'AAA' is based jointly on the Parish of East Baton Rouge, Louisiana (currently rated A by Fitch) and the support provided by an irrevocable, direct-pay letter of credit (LOC) issued by Dexia Credit Local, acting through its New York Branch (the Bank) (currently rated 'AA /F1 ' by Fitch) securing the bonds. The short-term 'F1 ' rating is based solely on the LOC.

The long-term 'AAA' rating is based on Fitch's methodology which considers the likelihood of the failure of both a rated obligor and a bank LOC provider. The methodology results in a rating that is up to two notches higher than the stronger of the two credits if the following conditions are met: (1) both entities have a rating of 'A' or higher; (2) the transaction is structured such that payments from both the municipal issuer and the bank are in the flow of funds and both entities would have to fail to perform before the bonds defaulted; and (3) the credit of the bank and the rated obligor have no more than a medium degree of correlation. In this instance, there is a low degree of correlation. If either the Parish of East Baton Rouge, Louisiana or Dexia Credit Local were to be downgraded to below 'A', this methodology would no longer be applicable.

The Bank is obligated to make payments of principal and interest when due as well as purchase price for tendered bonds during the weekly and bond interest term modes. The rating will expire upon the earliest of: April 16, 2011, the initial expiration date of the LOC, unless such date is extended; any prior termination of the LOC; or defeasance of the bonds. The LOC provides full coverage of principal plus an amount equal to 187 days' interest at a maximum rate of 14% based on a 365-day year, and purchase price for tendered bonds. The remarketing agent for the bonds is Citigroup Global Markets, Inc. The bonds are expected to be available for delivery on or about April 17, 2008.

The bonds will initially bear interest in the weekly interest rate mode, but may be converted to a daily rate, a bond interest term rate, long-term rate or auction rate mode. While in the weekly mode, interest will be paid on each February 1 and August 1 or if that day is not a business day, the next succeeding business day, commencing August 1, 2008. While the bonds are in the weekly rate mode, bondholders may tender bonds on any business day, with seven days prior notice. The bonds are subject to mandatory tender (i)on the first day of each rate period;(ii) upon the expiration, termination or substitution of the LOC; and (iii)on the day next succeeding the last day of each bond interest term rate period. Optional and mandatory redemption provisions also apply to the bonds.

The Parish is issuing the 2008A Bonds to refund outstanding bonds.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.