As part of ongoing surveillance, Fitch Ratings has affirmed the Burbank Public Financing Authority''s $52,000,000 outstanding series 2007 tax allocation revenue bonds at ''A''. The Rating Outlook is Stable.

The ''A'' rating reflects the satisfactory project area characteristics including its stable and mature, though moderately concentrated, tax base; the portability risks associated with a large proportion of unsecured value (mostly aircraft); solid debt service coverage from pledged revenues; and limitations on additional parity debt. The rating also reflects the largely built-out project area''s location which is only minutes from downtown Los Angeles. The bonds are ultimately secured by the net tax increment generated from the Golden State Project Area. A portion of the bonds utilized a cross-over structure, in which part of the debt service will be paid by a government securities escrow though Dec. 1, 2013.

The Stable Outlook reflects Fitch''s expectation for maintenance of solid debt service coverage going forward despite the project area''s reliance on unsecured - and mostly aviation-related - commercial property. While not foreseen, a prolonged downward trend in aviation activity at the Burbank (Bob Hope) Airport, or the loss of Southwest Airlines, its leading commercial airline, could impact the project area''s tax increment revenues.

The project area, which was formed in 1970, spans 1,100 acres, or approximately 10% of the city''s geographic area. While small in total acreage, the project area''s assessed value (AV) totals $2.9 billion. The tax base consists mainly of commercial and industrial property, and is considered concentrated with the 10 leading taxpayers comprising 38% of total AV. Additionally, roughly 50% of AV consists of unsecured property thanks to the presence of the airport, as well as the existence of sophisticated movie studio equipment and other commercial properties. Residential property accounts for less than 1% of AV. Fitch believes the airport''s role as a regional origination and destination (O&D) airport and low cost structure help mitigate the tax base concentration.

Tax base growth has been strong over the past several years leading to solid debt service coverage of senior and subordinate bonds. In 2009, incremental tax revenues covered total debt service by 1.9x, with similar coverage projected in 2010, as AV for fiscal 2010 increased only slightly compared to fiscal 2009. Coverage of maximum annual debt service is projected to be no less than 1.37x, assuming no changes to the current AV. While the project area has experienced strong tax base growth through much of the past decade, Fitch expects tax base growth to slow considerably from previous levels over the near-term. Debt service coverage holds up well under various Fitch-run stress scenarios.

The City of Burbank (population 107,000) is located just 12 miles northeast of downtown Los Angeles. Burbank has a large commercial presence and has long been home to the entertainment industry with production facilities for Walt Disney, Warner Brothers, and NBC/Universal. Residents also benefit from proximity to a strong transportation network and access to LA''s large and diverse regional economy. The local rate of unemployment, historically below state and national levels, has steadily increased to a rate above 10% in August 2009. However, median household income indicators remain above state and national levels, while home foreclosure rates are tracking well below regional and national levels.

Additional information is available at ''www.fitchratings.com''.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY''S PUBLIC WEBSITE ''WWW.FITCHRATINGS.COM''. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH''S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE ''CODE OF CONDUCT'' SECTION OF THIS SITE.

Contacts:

Fitch Ratings
Andrew DeStefano, 212-908-0284, New York
Karen Ribble, 415-732-5611, San Francisco
or
Media Relations:
Brian Bertsch, 212-908-0549, New York
Email: brian.bertsch@fitchratings.com
Sandro Scenga, 212-908-0278, New York
Email: sandro.scenga@fitchratings.com