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hit4IIIJ1iu <br />FITCH AFFIRMS INDIAN RIVER COUNTY, FL WATER <br />& SEWER REVS AT 'AAA'; OUTLOOK STABLE <br />Fitch Ratings -New York -26 January 2015: Fitch Ratings affirms its 'AAA' rating on the following <br />Indian River County, FL (the county) revenue bonds: <br />--$21.3 million water and sewer system revenue refunding bonds, series 2009. <br />The Rating Outlook is Stable. <br />SECURITY <br />The bonds are supported by the net revenues of the county's water and sewer system (the system). <br />KEY RATING DRIVERS <br />EXCELLENT FINANCIAL PROFILE: The system has produced over 2.0x debt service coverage <br />(DSC) for the past five years and has maintained excellent liquidity. Unaudited fiscal 2014 results <br />show 2.3x DSC and nearly $36 million in unrestricted available cash, equating to approximately 830 <br />days cash on hand. <br />MINIMAL CAPITAL NEEDS, LOW DEBT: The system's capital improvement program (CIP) is <br />limited and primarily addresses renewal and replacement (R&R) projects. Debt levels are low and <br />are expected to decline further following the county's payment of existing and callable senior lien <br />debt with cash in mid- calendar year 2015. <br />CONSERVATIVE AND ATTENTIVE MANAGEMENT: The management team has many years <br />of service and familiarity with the system and in the field and is conservative in their financial <br />projections and budgeting practices. <br />AFFORDABLE AND FLEXIBLE RATE STRUCTURE: The system has not increased rates since <br />1999 due to low population growth and wide operating margins. Though it has no plans to do so in the <br />foreseeable future, the system is authorized to impose consumer price index adjustments if necessary. <br />RATING SENSITIVITIES <br />RATING STABILITY EXPECTED: The rating is sensitive to shifts in fundamental credit <br />characteristics, including maintaining strong financial metrics and ensuring adequate capital <br />investment. The Stable Outlook reflects Fitch's expectation that such shifts are unlikely. <br />CREDIT PROFILE <br />Indian River County (implied unlimited tax general obligation rating of'AAA' by Fitch) is located on <br />Florida's central Atlantic coast about 86 miles southeast of the city of Orlando. The county covers <br />nearly 500 square miles and has a population of nearly 144,000. The economy is supported by <br />construction, manufacturing, health care, tourism, educational services, retail, and distribution. <br />STRONG CURRENT AND FUTURE FINANCIAL PROFILE <br />46 <br />