FOR IMMEDIATE RELEASE                                             February 26, 2001

CARY, NC – All three major national bond rating agencies have given the Town of Cary their highest possible rankings, a move that represents a reaffirmation of Cary’s financial strength by Moody’s and Fitch, which rated Cary Triple-A in 1998, and an all important change for the better by Standard & Poor’s which decided to raise its 1998 rating of Cary from AA+ to the coveted Triple-A. The new ratings come after Cary officials met in New York City on February 5^th with Fitch and Moody’s and on February 12^th in Cary with Standard & Poor’s to update them on Cary’s financial status and to ask for re-ratings for tomorrow’s planned sale of $76,900,000 in general obligation bonds for water and road improvements which were approved by Cary voters in a 1999 special referendum. The Town also discussed plans to refinance $12.4 million in existing debt.

The Triple-A triple hit by the Town will save Cary and its citizens hundreds of thousands of dollars in interest over the years as the Town borrows money for the large capital projects. This is in addition to the $400,000 the Town will save by refinancing the $12.5 million in existing debt.

According to company documents, Fitch officials based their decision to continue Cary’s Triple-A rating "on the Town of Cary's exceptionally strong financial position, rapidly increasing tax base and growing economy." They added that "debt levels are low and the capital improvement plan is manageable given expectations of controlled population and property value growth. Management efforts over the current ten-year CIP are focused on growth management with infrastructure development increasingly supported by developer fees." Fitch officials also stated that "the town's financial flexibility is extremely high with general fund balances exceeding annual operating expenditures, and the property tax rate remains moderate as the town pays for many capital projects on a pay-as-you-go basis."

Standard & Poor’s found the Town's financial position to be "strong, supported by good management." According to its published reports, S&P’s "rating upgrade reflects the town's strong proactive management of its rapid development and high levels of operating and financial flexibility." Other factors in S&P’s consideration of the Town’s bond rating included Cary’s location within a strong regional economy, high wealth levels and historically low unemployment, continued strong building activity along with tax base growth diversification, and a "very strong financial performance and flexibility."

Moody's based its rating of Cary on "the town's history of strong financial performance, a growing economy in an affluent and stable area, and increasing, yet manageable, debt levels." The company "expects the town's strong financial performance to continue given ongoing revenue growth, more than ample reserve levels driven by a growing tax base and prudent financial management."

"We’re very pleased with these meetings," said Town Manager Bill Coleman. "They show the highest level of confidence in how the Town is managing its financial position."

While as many as seven cities in North Carolina have AAA ratings, only four—including Cary--have Triple A’s from three or more. North Carolina has a higher percentage of jurisdictions with AAA ratings than any other state, due in large part to NC’s conservative financial practices monitored by the State and Local Government Finance Division of the NC Department of State Treasurer.

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