OREANDA-NEWS. Fitch Ratings has assigned a 'AAA' rating to the following state of Florida full faith and credit bonds:

--$91.565 million Department of Transportation Right-of-Way (ROW) Acquisition and Bridge Construction Bonds, series 2016B.

The bonds are expected to sell competitively as soon as the week of June 20, 2016 for bids on 18 hours' notice.

The Rating Outlook is Stable.

SECURITY

Florida's full faith and credit bonds are secured first by specific revenues. For ROW bonds, a first lien on motor and diesel fuel taxes. Florida's full faith and credit are also pledged and provide the basis for the rating.

KEY RATING DRIVERS

Florida's 'AAA' general obligation (GO) rating and Issuer Default Rating (IDR) recognize its strong financial management practices, moderate debt burden, adequately-funded pension system, solid long-term economic prospects, and satisfactory level of reserves. Long-term economic fundamentals are strong with future growth expected. Revenue performance has improved along with the economy providing the state with increased financial flexibility.

Economic Resource Base

Florida's strong economic resource base reflects rapid growth, diversification of the economy, and favorable migration trends that continue to be source of growth. The economic recovery in Florida continues to accelerate, having emerged slowly at first from the national recession.

Revenue Framework: 'aa' factor assessment

Florida's revenues, primarily a sales tax, tend to exhibit more economic sensitivity than that of the states on average. Fitch anticipates Florida revenues will grow on a real basis with continued economic expansion but will likely continue to exhibit greater weakness during economic downturns.

Expenditure Framework: 'aaa' factor assessment

The state maintains ample flexibility with low carrying cost burden and the broad expense-cutting ability common to most U. S. states. Medicaid and education remain key expense drivers and will likely keep expenditures growing at or above inflation.

Long-Term Liability Burden: 'aaa' factor assessment

Florida's long-term liability burden is low and well managed. Liabilities are well below the median for U. S. states with modest debt issuance and well-funded pensions. Debt issuance is carefully managed both through statutory limits and a debt affordability process.

Operating Performance: 'aaa' factor assessment

The state employs sound financial management practices and has a history of prompt action to maintain fiscal balance and reserves. The state is well positioned to address economic downturns with ample budget flexibility and reserves.

RATING SENSITIVITIES

Stable Credit Characteristics: Florida's ratings and Stable Outlook assume continued strong prospects for economic growth and ample fiscal flexibility, both in terms of fiscal management and maintenance of reserves.