445 million excise tax revenue bondsseries 2009

AUSTIN, Texas(Business Wire)Fitch Ratings has assigned an 'AAA' rating to the $252.0 million generalobligation bonds (GOs), series 2009 of Chandler, Arizona. Fitch also hasassigned an 'AA' rating to the city's $32.445 million excise tax revenue bonds,series 2009. Additionally, Fitch has affirmed its 'AAA' rating on the city's$231.2 million in GOs outstanding. The Rating Outlook for both the GOs and excise taxrevenue bonds is Stable. The GO bonds are payable from an ad valorem tax levied upon all taxable propertywithin the city, without limitation as to rate or amount. Proceeds of the bondswill be used to finance various capital improvement projects, including streets,parks, public safety and the water and wastewater utility.

Proceeds willfinance water and wastewater utility improvements and refund a portion of thecity's outstanding utility system revenue bonds for annual interest savings. Both ratings reflect the stellar financial position, sound financialstewardship, below average debt burden, and diversifying economic base of thecity. Although there is some employment sector and leading taxpayerconcentration, the commitment of the primary employer in the city largelymitigates this concern. Residential building in Chandler has slowed dramaticallyover the past 18-24 months, as it has across the Phoenix metropolitan area.However, the slowing in Chandler also is attributable to the maturity of thecity.

The current recession is pressuring certain revenue sources for the city,but Fitch expects that both recent and planned adjustments by the city in bothrevenues and spending will minimize any negative impact. Located in the Phoenix metropolitan area, Chandler has an estimated 2008population of more than 250,000. Chandler is home to thehigh technology industry and manufacturing, with more than 75 of localmanufacturing jobs in high technology. Intel is the leading employer with morethan 11,000 workers, and Microchip Technology, Inc employs nearly 1,500.