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Summary: Indian River County, Florida; Miscellaneous Tax Credit Profile Indian River Cnty (Spring Training Fac) misc tax Unenhanced Rating Many issues are enhanced by bond insurance. Rationale A+(SPUR)/Stable Upgraded S&P Global Ratings raised its rating on Indian River County, Fla.'s series 2001 revenue bonds (spring training facility) outstanding to 'A+' from 'A'. The outlook is stable. The upgrade reflects the application of our "Priority -Lien Tax Revenue Debt" criteria (published Oct. 22, 2018), which factors in the strength and stability of pledged revenue and the general credit quality of the municipality where taxes are distributed or collected, known as the obligor's creditworthiness. The bonds are limited obligations of the county payable only from, and secured by, a lien on the following pledged revenue: • Annual payments of $500,000 received by the county from the state pursuant to Section 212.20, Florida Statutes, the only revenue source securing the bonds beginning in 2022; • The fourth -cent tourist development tax levied by the county; and • 86% of the local government half -cent sales tax distributed to the county. The Florida Office of Tourism and Trade and Economic Development has certified Indian River County as a location for a retained spring training franchise, enabling the county to receive money from the state under Section 212.20 of the Florida Statutes. These funds may be used only for the acquisition, construction, reconstruction, or renovation of a facility for a retained spring training franchise or to pay or pledge for the payment of debt service only on bonds issued for this purpose. Monthly distributions of $41,667 from the state's general fund to the county began in March of 2001, and extend for 30 years. Beginning in 2022, debt service on the bonds decreases to an amount essentially equal to the state payments, thereby providing lx coverage on a stand-alone basis through maturity. Given that this revenue source is the only revenue source beginning in 2022, our assessment of the bonds is based on this revenue stream. The fourth -cent tourist development tax is levied by the county on every person who rents or leases hotel, motel, or other accommodations for a term of six months or less. Similar to the state payments, proceeds from the fourth -cent tax are dedicated to construction or debt service costs associated with the spring training facility. In addition, in January 2019, the county's board of commissioners approved a change in county code to allow for this revenue source to be used to promote and advertise tourism in Florida both nationally and internationally. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT MARCH 29, 2119 2