Fitch Ratings assigns an ''AA'' rating to Milwaukee County, Wisconsin''s (the county) approximately $29.9 million taxable general obligation (GO) corporate purpose bonds, series 2009E (Build America Bonds- Direct Payment) and approximately $15.6 million GO promissory notes, series 2009F. The series 2009E bonds and the series 2009F notes will sell competitively on Nov. 5, 2009 and are secured by the county''s full faith and credit pledge, payable from unlimited ad valorem taxes. Proceeds will finance various capital projects. In addition, Fitch affirms the approximately $684 million of outstanding county GO debt at ''AA'' and approximately $135 million of outstanding series 2009B taxable pension note anticipation notes at ''AA-''. The Rating Outlook is Stable.

The ''AA'' rating reflects the county''s conservative fiscal management, which has led to consistent financial performance; a broad and diversifying economic base; and manageable debt profile and borrowing plans. While the service industry has expanded at a faster pace than manufacturing, durable goods manufacturing still represents a sizable presence in the area and has dampened overall employment growth in the county. Unemployment has improved in recent months and is now near the U.S. average. The county operates under a state-imposed tax cap, and financial margins are slim with ongoing pressures likely to remain. Continued positive financial operations remain an important credit consideration and will be key in maintaining the rating.

The Milwaukee area''s economic indicators are somewhat mixed. Historically strong property valuation growth slowed significantly in 2008 as values grew by just 1.6% over 2007 levels. The tax base may contract slightly in 2009, reflecting housing foreclosures, above-average subprime mortgage exposure and weakened residential homebuilding activity. Both the county''s tax and employment base are broad and diverse, but unemployment rates remain above state averages. The county''s August 2009 unemployment rate was 10% compared to the state and national rates of 8.4% and 9.6%, respectively; county unemployment is down slightly from 10.5% in June 2009.

The county continues to sustain its financial performance despite weakening sales tax and state-shared revenues. Fiscal 2008, the most current audited results, showed a $796,000 surplus and an ending general fund balance of $49.1 million or 4.5% of expenditures and transfers out. Consistent with prior years'' performance, unreserved general fund balance remains a narrow $9.9 million, representing less than 1% of spending. Fiscal 2009 has been challenging, but the county has moderated its deficit by implementing expenditure cuts and currently has an approximately $2 million shortfall, which is less than 1% of the 2009 budget. Officials hope to end fiscal 2009 with a balanced budget through additional cost reductions.

Fitch expects fiscal 2010 will be a difficult year for the county as management is currently projecting a $90 million budget gap mostly due to an increase in pension, healthcare and personnel costs and a decline in revenues. The county''s budget typically projects a deficit, and actual results are often better because of the corrective actions taken within the fiscal year. Nonetheless, the 2010 budget gap is more sizeable than prior years and significant actions will be necessary to maintain fiscal balance. Further, while the county maintains operating tax margin, the state cap limits the increase in property tax revenue for fiscal 2010 to no greater than 2%, plus some adjustment for tax increment districts; debt service is exempt from the state cap limits. The county has consistently demonstrated a willingness to align revenues with expenditures, which Fitch believes will continue. However, given the minimal general fund balance, any deterioration in reserve levels could have a negative impact on the rating.

The county''s direct debt burden is a moderate 1.1% of market value and $765 on a per capita basis. Overall debt is above average at 4.6% of market value and $3,330 debt per capita, primarily reflecting the inclusion of the city of Milwaukee (GO bonds rated ''AA+''; Negative Outlook by Fitch) and Milwaukee Metropolitan Sewer District (GO bonds rated ''AAA''; Stable Outlook by Fitch). Debt amortization remains rapid. The county is accelerating its five-year capital improvement plan to take advantage of federal stimulus programs and expects to issue additional debt in both the spring and fall of 2010.

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

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Contacts:

Fitch Ratings, Chicago
Dana N. Sodikoff, 312-368-3215
Melanie A.J. Shaker, 312-368-3143
or
Media Relations:
Cindy Stoller, 212-908-0526, New York
Email: cindy.stoller@fitchratings.com