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lµitc Ratings FITCH AFFIRMS INDIAN RIVER COUNTY (FL)'S SPRING TRAINING REVS AND IDR; OUTLOOK STABLE Fitch Ratings -New York -02 November 2016: Fitch Ratings has affirmed the following ratings on Indian River County, FL: --Long-Term Issuer Default Rating (IDR) at 'AAA'; -$6.7 million spring training facility revenue bonds, series 2001 at'AA+'. The Rating Outlook is Stable. SECURITY The spring training facility revenue bonds are limited obligations of the county, secured by a first lien on a statutory annual distribution of funds from the State of Florida general revenue fund for. new or retained professional sports facilities, and proceeds from the fourth -cent tourist development tax (TDT) levied by the county and 86% of the local government half -cent sales tax distributed to the county by the state. The lien on the TDT and half -cent sales tax is automatically released as of April 1, 2021 (10 years before the final maturity date of the bonds of April 1, 2031). The bonds are additionally secured by.a cash -funded reserve equal to maximum annual debt service (MADS). KEY RATING DRIVERS The 'AAA' IDR reflects the county's exceptional financial resilience, superior budget flexibility and prudent financial management. The 'AA -P rating on the special facility revenue bonds includes the strong debt service coverage, solid expected growth prospects, and exceptional resilience that Fitch expects the revenue stream to show through a moderate economic downturn scenario. The rating also reflects Fitch's expectation that pledged revenues will not be leveraged to the 1.25x ABT. Economic Resource Base Indian River County is located on the Atlantic coastline, approximately 135 miles north of Miami, and includes the cities of Vero Beach and Sebastian. The county's population has shown steady growth with a 2015 census estimate of 147,919, up 7% since 2010. Revenue Framework: 'aa' factor assessment Fitch expects revenues to rise at a slow pace but one that exceeds historical trends over the last decade or so, driven by growth in population and economic development. The county has considerable legal revenue raising ability with current millage rates well below the 10 -mill statutory limit. Expenditure Framework: 'aa' factor assessment The county's pace of spending is expected to be in line with or marginally above revenue trends in the absence of policy action. Carrying costs for debt and retiree liabilities are moderate at 10%. Long -Term Liability Burden: 'aaa' factor assessment County debt and pension benefit liabilities are very low, estimated at below 3% of personal income. Liabilities are expected to remain low.