Fitch Rates $371.5MM State of Georgia GO Bonds 'AAApre'; Outlook Negative

  Fitch Rates $371.5MM State of Georgia GO Bonds 'AAApre'; Outlook Negative

Business Wire

NEW YORK -- February 7, 2013

Fitch Ratings assigns a rating of 'AAApre', Negative Outlook to the State of
Georgia general obligation (GO) bonds, refunded on Jan. 8, 2013, consisting
of:

--$58,650,000 GO refunding bonds 2004C maturing July 1, 2015 - July 1, 2018;

--$113,360,000 GO bonds 2006B maturing March 1, 2022 - March 1, 2024; and

--$199,535,000 GO bonds 2006G maturing Oct. 1, 2019 - Oct. 1, 2024 (the
bonds).

The 'AAApre', Negative Outlook rating is based on the pledge of securities in
the escrow deposit fund securing the bonds and reflects the lien of the
refunded bondholders on the escrow trust funds and that all amounts have been
invested in direct non-callable obligations of the United States. The U.S.
full faith and credit rating is currently rated 'AAA', Negative Outlook by
Fitch.

Fitch also maintains an unenhanced rating of 'AAA', Stable Outlook on the
bonds based on the GO pledge of the state's full faith and credit (rated
'AAA', Stable Outlook by Fitch). The bonds remain a general obligation of the
state even though the source of repayment is expected to be the securities in
the escrow deposit fund, further described below. For certain of these
maturities, the 'AAA', Stable Outlook rating was incorrectly withdrawn
following the refunding. The unenhanced ratings have been corrected. For more
information on the State of Georgia GO rating, see press release 'Fitch Rates
Georgia $583MM General Obligations 'AAA' Outlook Stable' dated Dec. 6, 2012
available at 'www.fitchratings.com'.

The 2004C bonds were partially refunded with proceeds of the State's GO bonds
2013B. The 2006B and 2006G bonds were refunded with proceeds of the State's GO
bonds 2013C. The ratings apply to the 2004C, 2006B and 2006G bonds listed by
CUSIP numbers, below.

The escrow agent, Bank of New York Mellon Trust Company, N.A., holds two
separate special irrevocable escrow deposit trust funds, one for the benefit
of the 2004C refunded bondholders and one for the benefit of the 2006B and
2006G refunded bondholders. All cash and securities held in each respective
fund are pledged irrevocably to the payment when due of interest on the
refunded bonds and the payment of principal upon redemption. The refunded
2004C bonds will be redeemed on July 1, 2014, the refunded 2006B bonds will be
redeemed on March 1, 2016, and the refunded 2006G bonds will be redeemed on
Oct. 1, 2016, all at a price of par plus accrued interest.

Samuel Klein and Company verified the mathematical accuracy of computations
relating to the adequacy of income from escrowed funds to pay debt service
requirements of the refunded bonds. These computations were contained in
schedules provided to them by Public Resources Advisory Group, financial
advisor for the refunding bonds. According to the Samuel Klein verification
report, the securities and cash deposited will produce amounts necessary for
timely payment of the principal and interest on the refunded bonds. Prior to
accepting substitute investment securities, the escrow agent must receive a
new report verifying the continued sufficiency of escrowed funds to meet all
future payments of principal and interest on the refunded bonds.

The 'AAApre', Negative Outlook rating applies to the 2004C bonds with the
following CUSIP numbers:

373384D29

373384D37

373384D45

373384D52

The 'AAApre', Negative Outlook rating applies to the 2006B bonds with the
following CUSIP numbers:

373383W53

373383W61

373383W79

The 'AAApre', Negative Outlook rating applies to the series 2006G bonds with
the following CUSIP numbers:

3733833D8

3733833E6

3733833F3

3733833G1

3733833H9

3733833J5

Additional information is available at www.fitchratings.com. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'U.S. Municipal Structured Finance Rating Criteria' (Feb. 28, 2012);

--'Guidelines for Rating Prerefunded Municipal Bonds' (Dec. 4, 2012).

Applicable Criteria and Related Research:

U.S. Municipal Structured Finance Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=672570

Guidelines for Rating Prerefunded U.S. Municipal Bonds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=695465

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Contact:

Fitch Ratings
Primary Analyst
Trudy Zibit, +1-212-908-0689
Managing Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Kasia Reed, +1-212-908-0500
or
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Douglas Offerman, +1-212-908-0889
Senior Director
or
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Ronald P. McGovern, +1-212-908-0513
Senior Director
or
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