Fitch Rates $3.5MM Dos Palos Oro Loma JUSD --California-- GOs Series 2002A 'A'.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Dec. 11, 2002

Fitch Ratings assigns an 'A' rating to Dos Palos Oro Loma Joint Unified School District, CA's (the district) general obligation bonds, Election of 2002, series 2002A (bank qualified) $3,500,000, scheduled to be sold

The 'A' general obligation bond rating reflects the district's sound financial operations, highlighted by healthy general fund reserves and operating surpluses. The debt levels are moderate and will remain so after all authorized bonds are issued, due to minimal capital needs. The district's economic base is heavily concentrated in agriculture. As is typical of an agricultural community, unemployment rates are higher than those of the state and nation, while income levels are well below average. Assessed valuation growth has historically been adequate, although the district experienced a slight decline in 2002.

Located on the border of Fresno and Merced counties, the district serves an estimated 10,407 residents from unincorporated areas in both counties, as well as the city of Dos Palos. The district includes three elementary schools, one middle school, two high schools, and one adult education center, serving over 2,700 students. Enrollment has been increasing at a manageable level and is predicted to continue at a stable rate.

Major employers and taxpayers in the district are heavily concentrated in agriculture. Unemployment has decreased to 14% in fiscal 2001, an improvement from 17% in 1993. Assessed valuation has experienced adequate growth in recent years despite a 2% drop in 2002. Income levels have risen slowly but remain well below state and national averages. Financial operations in the district are sound, including closely matched expenditure and revenue growth as well as significant fund reserves.

This is the first issuance of a $4.4 million voter-approved general obligation authorization. The district maintains moderate debt levels, with this issuance representing the only direct debt. Bond proceeds will fund renovation and modernization of existing school facilities as well as a new pool serving the community and high school students as part of a $9.4 million, ten-year capital program.