FOR IMMEDIATE RELEASE

Contact:    Jim Lewin, Lee County Administration
                (941) 335-2336

FORT MYERS, Fla. (May 21, 2001) – Moody’s Investors Service, one of the country’s four major rating agencies, has assigned a rating of A3 to Lee County Government’s $162.5 million of transportation facilities (bridges) debt.

A3 is the agency’s first level of quality rating for "Upper Medium Grade" debt.

According to Moody’s, "The bridges and causeway have experienced favorable utilization trends. …Moody’s expects fiscal operations to remain satisfactory given favorable usage trends. At 1.8 times, fiscal 2000 toll revenue provided good coverage of debt service requirements."

Moody’s awarded the rating after reviewing the county’s latest proposed bond issue – a refinancing of $66.14 million of transportation bonds first issued as part of a 1987 bond to build the parallel span of the Cape Coral Bridge, which was later refinanced in 1991.

In June 2000, Moody’s upgraded its rating of Lee County Government Capital Revenue Bonds from A2 to A1 for the county’s $178.3 million of parity debt (debt pledged with sources other than enterprise fund revenues and property taxes).

As reasons for that upgrade, Moody’s cited "ample covenanted non-ad valorem revenues, well-managed financial operations with growing reserve levels, and an expanding economy with a growing population. …Conservative budgeting has helped produce favorable budget-to-actual performance in the operating funds."

Lee County Government’s total debt is about $1.2 billion (including the airport, which is a separate, self-supporting authority). Annual debt service (repayment of principal and interest) represents about 8.6 percent of appropriations. Standard & Poor’s Rating Group, another of the major rating agencies, suggests that annual debt service should not exceed 10-to-15 percent of appropriations.

For more information about Lee County’s debt, the Lee County Debt Manual is online at the county government’s web site (www.lee-county.com) under the "Lee County Documents Online" section.