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Summary: Indian River County, Florida; General Obligation Credit Profile Indian River Cnty Unenhanced Raring AA+(SPUR)/Stable Upgraded Many issues are enhanced by bond insurance. Rationale Standard&Poor's Ratings Services raised its rating on Indian River County, Fla.'s general obligation(GO)debt one notch to'AA+'from'AA'based on Standard&Poor's local GO criteria,published Sept. 12, 2013,on RatingsDirect.The outlook is stable. A 0.5-mill limited GO pledge,approved through an electorate referendum in 2004,secures the series 2006 bonds.The pledged millage provides 1.32x maximum annual debt service coverage(DSC)based on fiscal 2014 taxable values, assuming a 95%collection rate;officials,however,set the rate annually to provide ix annual DSC(the 2015 rate was 0.3694 mills).At certain rating levels,we do not differentiate between limited and unlimited GO pledges if an issuer has sufficient financial flexibility. The rating reflects our opinion of the following credit factors for the county,specifically its: • Strong economy with a very diverse property tax base, • Very strong management with"strong"financial management practices under our Financial Management Assessment(FMA)methodology, • Very strong budgetary flexibility with available reserves at more than 30%of expenditures over the past three fiscal years, • Very strong liquidity with exceptional access to capital markets, • Adequate budgetary performance with expected general fund surpluses in fiscal years 2014 and 2015,and • Very strong debt and contingent liabilities with rapid debt amortization. Strong economy We consider Indian River County's local economy strong with projected per capita effective buying income at 111%of the national average.Market value is about$133,800 per capita.The county spans 497 miles in the middle of Florida's eastern coast,approximately 100 miles southeast of Orlando and 135 miles north of Miami.Sebastian is the county's largest city.Vero Beach is the county's seat.With 100 miles of waterfront property and 23 miles of Atlantic coastline, as well as the Los Angeles Dodgers'spring training facility,tourism is a major economic driver.Therefore, unemployment is above national rates.According to the U.S.Bureau of Labor Statistics,unemployment averaged 9.1% in 2013,well above state and national averages.The tax base is very diverse with the county's 10 leading taxpayers accounting for just 3.1%of total assessed value. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT DECEMBER 12,2014 2 1374753 1 302292920 22