(Source: Business Wire)Fitch Ratings assigns a 'BBB+' rating to Wayne County, Michigan's approximately $25 million general obligation (GO) limited tax building improvement bonds, series 2009B (taxable - recovery zone economic development bonds), scheduled for negotiated sale on Oct. 22. Also, as described in the Fitch release dated June 3, 2009, Fitch downgrades the long-term rating assigned to the following two series of Wayne County (MI) (Detroit Wayne County Metropolitan Airport) airport hotel revenue bonds to 'BBB+' from 'A':

--Series 2001A;

--Series 2001B.

The Rating Outlook is Negative.

The rating was not reflected on Fitch's web site. With this affirmation the full rating history is now available on the web site.

Finally, Fitch affirms the county's outstanding limited tax GO debt at 'BBB+'. All outstanding GO bonds carry a Negative Outlook.

The rating reflects a weak local economy with high unemployment rates and a contracting tax base. Fitch also notes the increased constraint of the limited GO pledge of the county given that taxable values, and thus the property tax levy available for both operations and debt service, have declined. A downgrade could occur if accumulated deficits within the general fund are not addressed as is currently planned by the county or if the economy deteriorates significantly further. As auto production has declined, employment at Ford Motor Co. (Ford), Chrysler Corp. (Chrysler), and General Motors Inc. (GM) has contracted over the past three years. Other economic credit factors which have long been credit risks such as population losses, below-average income levels, and automotive tax base concentration have become more pronounced. The rating and Negative Outlook also reflect the financial effects of the economic recession on the county. The 2010 budget reflects strong expenditure actions, but the financial picture is expected to remain severely stressed in the near term, and third-circuit court and health and human services fund deficits are expected to continue through 2014.

Located in the southeastern portion of Michigan, Wayne County ranks as the state's largest county in terms of both population and economic output. Ford, Chrysler, and GM provide more than 40,000 jobs in the county; unemployment in August 2009 equaled a very high 18.2%. Housing starts have been down substantially in the county in the past three years, and job losses and other economic effects from the auto industry point to continued negative housing trends. Home foreclosures, a tenacious and protracted issue for the county, have exposed vulnerability to subprime mortgages.