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BS/Bg/OZ 11:13:13 <br /> <br />Coborr~s Coo~g-~ <br /> <br />78~ 9Z8 Z881 <br /> <br />TO:Blair Bc~.ctt <br /> <br />Page 881 <br /> <br />Press Release <br /> <br />Fit&Ratings <br /> <br />Fitch <br />One Star Strut Plaz~ <br />New york, NY 10004 <br />(2t2) 90~-OgtO <br />www.titchr~Sngs.com <br /> <br />Fitch Rates Cabarrus County, North Carolina's $26H COPS 'AA-' <br /> <br />Fitch Ratings-New York-August 8, 2002: Fitch Ratings assigns an-'AA-' rating <br />to Cabarrus County, North Carolina's (the county) $26,120,000 certificates of <br />participation (COPs), series 2002. The certificates are scheduled to price Aug. <br />27 through negotiation led by UBS PaineWebber Inc. and Legg H&son Wood Walker <br />Inc. Fitch also affirms'the 'AA' rating on the county's approximate]y $60 <br />million outstanding general obligation bonds. <br /> <br />The 'AA-' ra~ing on the 2002 COPs reflects sound lease provisions and the. <br />county's underlying credit quality. County credit characteristics lnclude solid <br />financial management, strong fund balance reserves despite a significant <br />drawdown expected for fiscal 2002, and a diversifying economic base. While the <br />local economy has felt the effect of the national economic'slowdown, <br />unemployment has only risen from 4.6% in June 2001 to 5.6% in June 2002, stlll <br />lower than state and national levels of 6.8% and 5.9%, respectively.. <br /> <br /> The certificates are secured by installment pa~nnents made by the county.to the <br /> trustee, as assignee of the Cabarrus County Development Corp., which is a <br /> non-profit corporation created to assist the county in financing public <br />· projects. Payments are subject to annual appropriation. The certificates will <br />provide funding for the construction of the Expo Center ~$20 million), school <br />gymnasiums ($2.5 million), and a school administration building ($4 million). <br />The Expo Center, a convention and conference center, is scheduled to open in <br />.September 2002 and serves as collateral for the certificates. Construction for <br />the sChool gymnasiums and the new administration building, whlch also serve as <br />collateral, is scheduled to begin in the next several months. The county's $3 <br />mllllon equlty contribution towards the construction of the. Expo Center is an <br />indication of the project's importance to the county, which, along with the <br />.school facilities used as collateral, adds to the county's incentive to budget <br />and appropriate installment payments. <br /> <br />Cabarrus County is located northeast of Charlotte in the. growing Piedmont <br />_section of the state. Population has increased a strong but manageable 32% over <br />the last decade to reach a 2000 population of 131,063. The county's employment <br />base has somewhat diversified away from its traditional textile manufacturing <br />base. The county is home to the Lowe's Motor Speedway, a sports and recreational <br />facility that seats 167,000 people; and Concord Mills, a 1.4 million square <br />foot mall facility. Because of the downturn in the economy, Corning Inc.'s <br />planned expansion of its 6abarrus plant has been put on hold. In addition, <br />Pillowtex Corporation, the county's largest'employer with over 4,000 employees, <br />just emerged from bankruptcy protection in May 2002,.but according.to county <br /> <br /> <br />