2009-01-14 02:46:59 -

In the course of routine surveillance, Fitch Ratings affirms the 'A+' rating on the city of Woodhaven, Michigan's approximately $2.7 million of outstanding series 2002 limited tax general obligation (GO) bonds. The Rating Outlook is revised to Negative from Stable.


The rating reflects Woodhaven's solid financial management, affluent residential tax base, and manageable capital needs. The Outlook change

reflects uncertainty regarding the city's ability to maintain financial flexibility should Ford Motor Company reduce employment or consolidate facilities. While management has taken prudent steps to build reserve levels and the city maintains some operating tax margin, Fitch believes that there could be long term financial and economic implications if Ford contracts, as Ford represents a sizable share of the city's economy and tax base. The city appears to be well positioned to handle the short-term affects of an interruption in Ford operations; however, the long term viability of automotive manufacturers remains unclear. Fitch expects the city will continue to closely monitor Ford's presence.


Fitch issued an exposure draft on July 31, 2008 proposing a recalibration of tax-supported and water/sewer revenue bond ratings which, if adopted, may result in an upward revision of this rating (see Fitch research 'Exposure Draft: Reassessment of the Municipal Ratings Framework'.) At this time, Fitch is deferring its final determination on municipal recalibration. Fitch will continue to monitor market and credit conditions, and plans to revisit the recalibration in the first quarter of 2009.


Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.








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