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3/52015 Fitch Ratings I Press Release <br /> FitchRatings <br /> Tagging Info <br /> Fitch Affirms South Bend Redevelopment Authority, IN's Lease Revenue <br /> Bonds at 'AA+'; Outlook Stable Ratings Endorsement Policy <br /> 05 Mar 2015 9.23 AM (EST) <br /> Fitch Ratings-New York-05 March 2015. Fitch Ratings affirms the 'AA+' rating on the following South Bend <br /> Redevelopment Authority, Indiana's(the authority) bonds. <br /> --$3.6 million taxable lease rental revenue refunding bonds, series 2011A (College Football Hall of Fame <br /> Project), <br /> --$1.4 million lease rental revenue refunding bonds, series 2011 B (Century Center Project), <br /> --$1.9 million lease rental revenue refunding bonds, series 2009 (Morris Performing Arts Center). <br /> In addition, Fitch affirms the 'AA+' rating on the city of South Bend's(the city) implied unlimited tax general <br /> obligation (ULTGO) bonds. <br /> The Rating Outlook is Stable. <br /> SECURITY <br /> The lease revenue bonds are payable from semiannual lease payments payable to the trustee two days prior to <br /> debt service payment on the bonds. <br /> The lease payments are secured by an ad valorem tax levied by the South Bend Redevelopment Commission <br /> (the Commission), on all taxable property in the City of South Bend Redevelopment District, an area <br /> coterminous with the city. Lease payments are not subjectto annual appropriation. <br /> If the leased property is damaged or destroyed,the Commission shall abate the lease payments for the period <br /> of time the leased property is unftfor use or occupancy. To mitigate the abatement risk,the Commission is <br /> required to carry physical loss insurance equal to the greater of 100% of the replacement cost of the property or <br /> amountto redeem the outstanding bonds and rental interruption insurance equal to two years. The leased <br /> properties consist of the College Football Hall of Fame, the Morris Performing Arts Center, and the Century <br /> Center Complex. <br /> KEY RATING DRIVERS <br /> SOLID RESERVES: The city's sound financial position is characterized by strong reserve levels and proactive <br /> managementthat has successfully navigated the reduction in property taxes caused by state property tax <br /> reform. Expenditure cuts combined with the implementation of local income taxes have put operations on firm <br /> ground. <br /> ECONOMY BENEFITS FROM UNIVERSITY PRESENCE.The close proximity of the University of Notre Dame <br /> provides economic stability, but the city continues to face ongoing challenges such above-average <br /> unemployment and poverty levels.Although improving, these levels are still above state and national averages. <br /> MANAGEABLE DEBT PROFILE.Above-average amortization, moderate debt ratios, and limited future debt <br /> plans are offset by weakly-funded pension plans. <br /> LEASE AND ULTGOON PAR: Fitch believes that insurance provisions sufficiently mitigate abatement risk to <br /> 1/4 <br />