Fitch Ratings has assigned an 'A+' rating to the following Broward County School Board Leasing Corp., Florida's (the corporation) certificates of participation (COPs):

--$173,780,000 series 2015B COPS.

Proceeds will be used to refund portions of the corporation's outstanding series 2007A COPs. The COPs are scheduled to be priced via negotiation on January 8.

In addition, Fitch affirms the following ratings:

--Approximately $1.5 billion outstanding corporation COPs at 'A+';

The Rating Outlook is Stable.

SECURITY

The COPs are secured by lease payments subject to annual appropriation by the Broward County School Board (the board or district) under a master lease-purchase agreement with the corporation. Upon certain events of default or the school board's failure to appropriate funds, all leases under the master lease will terminate, and the school board is required to immediately surrender possession of all facilities subject to the master lease.

KEY RATING DRIVERS

PRUDENT FISCAL MANAGEMENT: Management's prudent budgeting practices have resulted in maintenance of reserves within state and district policy levels. Reserves remain adequate and are expected to rise gradually in the near term.

COPS APPROPRIATION RISK: The rating incorporates the risk of annual appropriation by the board. The all-or-none appropriation feature of the master lease and the essential nature of leased assets, which are subject to surrender in the event of non-appropriation, temper this risk.

DEBT LEVELS PROJECTED TO BE MODERATE: Debt ratios are currently low but are anticipated to become more moderate as a result of the recent referendum approving significant GO debt. Such debt will be issued over the next few years and will support needed technology and school facility improvements.

ECONOMY CONTINUES IMPROVEMENT: Employment levels have risen at a steady pace over the last four years, and unemployment remains lower than the state and other large Florida counties. The economy exhibits good diversity, and benefits from extensive transportation and trade infrastructure and a reputation as a leading tourist destination. Income metrics are slightly above average.

TAX BASE EXPERIENCING GROWTH: The county-wide tax base experienced significant pressure during the recession and, after stabilizing in fiscal 2013 has experienced upward growth the past two fiscal years.

RATING SENSITIVITIES

MAINTENANCE OF RESERVES: The district's history of maintaining adequate reserves while addressing operating and capital needs indicates continued rating stability. A decline in reserves to levels below policy targets would pressure the rating.

CREDIT PROFILE

The district serves Broward County (ULTGOs rated 'AAA' by Fitch), situated on Florida's Atlantic coast between Miami-Dade and Palm Beach counties. The county is home to 31 incorporated municipalities including Fort Lauderdale, Coral Springs, and Hollywood, and ranks as Florida's second largest county, with a 2013 population of 1.8 million.

POSITIVE 2014 RESULTS; GRADUAL RESERVE BUILD-UP

The district was forced to reduce expenditures in recent fiscal periods as a result of state budget pressures resulting in cuts in state aid. These efforts have helped it maintain its reserves within state and policy levels.

The district currently maintains a fund balance policy that requires assigned and unassigned fund balances to be maintained at a minimum of 3% of revenues, excluding charter school revenues which flow through the district's general fund.

The district's fiscal 2014 general fund budget of $1.97 billion was up by 5.3%. Fiscal 2014 operating results were positive and assigned and unassigned fund balance grew by approximately $11 million, which includes $4.3 million allocated for other post-employment benefit (OPEB) costs. The committed general fund balance grew by $54 million due to the planned transfer of self-insurance funds to the general fund from the internal service fund. Unrestricted fund balance (the sum of assigned, unassigned and committed) grew to 6.8% of spending from a low 3.8% in fiscal 2013. Excluding the committed self-insurance funds, unrestricted fund balance grew to 4.1% of spending. Using the district's fund balance calculation, assigned and unassigned fund balance represent 4.8% of revenues.

The district has stated its intention to increase uncommitted fund balance to at least 6% and expects to do so over the next few years. Fitch believes that gradual growth in fund balance is achievable based on projections of student enrollment growth, the potential for increased state aid and management's monitoring of expenditure growth. The maintenance of adequate fund balance levels is a key rating factor.

FISCAL 2015 BUDGET INCLUDES SMALL SURPLUS

The fiscal 2015 general fund budget was up modestly compared to the fiscal 2014 budget. No use of general fund balance was appropriated again in fiscal 2015 and a small increase was instead projected into the budget. In addition to implementation of performance pay and salary increases, management prudently included approximately $7 million in combined contingencies for hurricane emergencies, any potential mid-year holdback of funding by the state (due to unbudgeted growth in state enrollment figures), and potential class size penalties. State-mandated spending is generating some pressure on operations, but Fitch believes the district retains the ability to adjust outlays to offset these directives. Management's history of prudent fiscal controls suggests that the district's sound financial profile will be maintained.

VOTERS APPROVED $800 MILLION IN GO DEBT FOR SCHOOL IMPROVEMENTS

Voters approved a November 2014 referendum for $800 million in GO bonds. The debt will be issued to finance technology and school security related projects and school facilities improvements. An approximate $200 million in bonds is expected to be issued in late spring 2015 after the bond validation process is completed. A separate debt service tax will be levied to service the debt and such tax is excluded from the calculation of the district's total tax levy and statutory 10-mill cap limitation.

Fitch considers the voters' approval of the debt to be a credit positive as it provides the district with the means to finance needed improvements and eases what could have been financial pressure on the district's general and capital funds. Debt ratios should become more moderate as the GO debt is expected to be issued gradually over the next few years and no additional COP debt is currently planned. Principal amortization for the corporation's COPs is average at 51% in 10 years.

LIMITED COP APPROPRIATION RISK

Fitch believes the district has a strong incentive to appropriate for lease payments. An event of non-appropriation would terminate all current leases under the master lease. Approximately 42% of the district's total assets are pledged under the master lease.

While any legally available revenue can be used for COPs debt service, the district has historically made payments from the 1.5-mill capital outlay tax. The district requires a slightly above average 1.03 mills to fund fiscal 2015 COP debt service and 1.07 mills to fund maximum annual debt service, assuming a 96% tax collection rate.

IMPROVING TAXABLE PROPERTY VALUES

After a 24% decline in taxable assessed property values from fiscal 2008 - 2012, the tax base has since improved. Values were up marginally for fiscal 2013 but increased 4.1% for fiscal 2014 and 8.1% for fiscal 2015. According to the Zillow Home Value Index, the growth in home values in Broward County was up 12.2% year over year through November.

WEALTH LEVELS STRONG; UNEMPLOYMENT RATES IMPROVE

County wealth levels are slightly above state and national averages. Broward County's unemployment rate improved to 4.8% in November 2014 from 5.2% the prior year. The county's unemployment rate compares favorably to Florida's unemployment rate of 5.6% and the nation at 5.5%. The county's job growth rate since 2011 has ranged between 2.6% and 4.0% through 2014 and the labor force has grown over the same period by 1.8% to 3.2%.

LOW DEBT BURDEN

Overall debt ratios remain low at 1.2% of market value and $1,333 per capita. Debt service costs consume 7% of total fiscal 2014 governmental spending which Fitch considers quite reasonable.

The district has $179 million in variable rate COPs which is equal to a manageable 10% of total direct debt; however, Fitch believes that school districts are more vulnerable to the risks of variable-rate debt than other issuers given their lack of revenue autonomy.

The district is not exposed to risks associated with liquidity agreements, as the series 2014A COPs (which refunded the series 2004D COPs) and series 2006B COPs are index-linked direct placements. Interest rate risk is synthetically fixed via swap contracts with limited termination risk and no collateral posting requirement for the district. The mark-to-market was a negative $47 million as of Nov. 28, 2014.

RETIREMENT COSTS ARE MANAGEABLE

All district employees participate in the state operated retirement system which Fitch considers adequately funded. Pension and OPEB costs are affordable. Total carrying costs for pension, OPEB pay-go and debt service equaled an affordable 11% of total fiscal 2014 governmental spending.

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

In addition to the sources of information identified in Fitch's Tax-Supported Rating Criteria, this action was additionally informed by information from Creditscope, University Financial Associates, S&P/Case-Shiller Home Price Index, IHS Global Insight, Zillow.com, National Association of Realtors.

Applicable Criteria and Related Research:

--'Tax-Supported Rating Criteria' (August 2012);

--'U.S. Local Government Tax-Supported Rating Criteria' (August 2012).

Applicable Criteria and Related Research:

Tax-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686015

U.S. Local Government Tax-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=685314

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=964915

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