Fitch Rts City of West Palm Beach Utility Sys VR Rfdg Bnds 2005 'AAA/F1+'.

NEW YORK -- Fitch Ratings assigns a rating of 'AAA/F1+' to the $54,540,000 City of West Palm Beach, Florida, utility system variable-rate refunding bonds series 2005 (the 'bonds'). The long-term 'AAA' rating assigned to the bonds is based on the support of a municipal

bond insurance policy provided by Financial Guaranty Insurance Company (FGIC), which insures scheduled payments of principal of and interest on the bonds, effective as of the date of issuance of the bonds. The insurance policy will extend to the final maturity date of the bonds, Oct. 1, 2029. The short-term 'F1+' rating assigned to the bonds is based on the support of a standby bond purchase agreement (SBPA), provided by Bank of America, N.A. The long-term underlying rating for the bonds is 'AA-' (see press release dated April 6, 2005 available on the Fitch Ratings web site at 'www.fitchratings.com').

The SBPA provides for the payment of the purchase price of tendered bonds during the daily and weekly interest rate modes and is sized to cover the principal portion of the purchase price plus 34 days of interest at the maximum rate of 12%, based upon a year of 365 days. The SBPA will expire on the expiration date of April 13, 2010, or upon the occurrence of other events of termination, as specified in the SBPA. The short-term rating on the bonds will expire upon any expiration or termination of the SBPA. Wells Fargo Bank, National Association is the tender agent for the bonds. The Senior Managing underwriters and remarketing agents for the bonds are Bear, Stearns & Co. Inc. and Citigroup Global Markets Inc. The bonds are expected to be available for delivery through DTC on or about April 13, 2005.

The bonds will initially bear interest in the weekly rate mode; they may be converted to a daily interest rate mode, flexible rate mode, or a fixed rate mode. While bonds bear interest in the daily or weekly rate modes, interest is payable on the first business day of each month, commencing May 2, 2005. During the weekly and daily rate modes bondholders may elect to tender their bonds upon delivery of prior notice to the Tender Agent. The bonds are subject to mandatory tender: (1) on conversion of interest rate mode; (2) upon the substitution, expiration of or termination of the SBPA; and (3) upon a Substitution of the Insurer. Optional and Mandatory redemption provisions also apply to the bonds pursuant to the terms of the documents.

The bonds are being issued to (i) refund certain bonds issued by West Palm Beach Florida, Utility System; and (ii) to pay the cost of issuing the series 2005 bonds including the bond insurance premium.