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Criteria I Governments I U.S. Public Finance: U.S. Local Governments General Obligation Ratings:Methodology <br /> And Assumptions <br /> Table 8 <br /> Assessing The Economic Score (see paragraphs <br /> Total Mrlwt Value PerCspils <br /> Projected per capita effective buying i mconne >5195 5100,000 to 380,000 to 555.000 to <br /> asa*A of U.S.projected per capita EBI ,000 51 ,000 3100,000 S80.CCC <5EE,000 <br /> X150 1 1. 2 2.F 3 <br /> 110 to 1EA 1.` 2 2.5 ?•.E• <br /> 85 to 110 2 .: 3 3.5 4 <br /> 70 to 85 2.5 v 15 4.5 <br /> s70 3 3.E 4 4. E <br /> Ascoreof 1°.'2', '3','4'. and .E' m ea n s very stro n g, strong, adequate, veak, and very%%eak. respectively. <br /> Qualitative facto-rs With a positive irrpact on the ini0al QualitativefactDrs with a negative irrpact on the initial <br /> score score <br /> Participation in a largerbroad and diversified economy fsee N egati ve bu d get i m pa ct fre m d em og ra ph ic pro file: population <br /> paragraphs 4E-47). decrease and+or high share of dependent population (�55%) <br /> have a material negative impact on future revenue growth and <br /> expenditure needs, <br /> Astabilizing institutional influence Wth a longstanding role as High county unemploym ent rate(>10%). <br /> a major employer, such as higher education, health care, <br /> military, a large and stable corporate presence. <br /> If employment concentration where an in d i vid u a I secto r <br /> (excluding education1health, government, and transportation, <br /> trade and utilities)represents more than 30°6 ofthe nonfarm <br /> wrk base, or tax base concentration Wiere the top 10 <br /> taxpayers represent more than 2,5%ofthe tax base exists,the <br /> score%worsens byone paint(1). Ifthetop 10 taxpayersexceed <br /> 45%ofthe tax base,the score worsens bytvo points(20). <br /> The adjustment impact of each qualitative factor countsfor one point(1.0), except for employment and taxbase concentration, <br /> wherethe scare maydiffer bytm points(20)asdescribed above.The final economic scare equalsthe initial score adjusted up <br /> or down based an thenet effect of the qualitative factors. rletricsthat equal a cut-off point between t%%o initial scores%Mll equate <br /> to the mrse scare.To calculatethe market value percapita,the criteria usethe most recent estimate available.To calculate <br /> projected percapita EBI,the criteria usethe most recent local level EBI available, adjusted forger capita personal income <br /> growth expectations forthe next fiveyears IHS Inc.(kno%v1 as Global Insight)oranother similar source is used forcounty-level <br /> data and U.S. income projections, while Nielsen (Claritas�f or another similar source isused for local legal data.To measure <br /> unemployment,the criteria use county4evel data from the Bureau of Labor Statistics and take the annual rate forthe last <br /> calendar year. For local governments located with multiple counties, county-level data is weight-averaged based on the <br /> percentage of the population ofthe local governm ent in each county. <br /> 42. The final economic score will vary from that suggested by the initial score depending on the presence of one or more <br /> conditions, as shown in the table 8. <br /> 43. Local income and TMV statistics may underestimate fundamental economic strength. For example,local TMV <br /> statistics will not accurately reflect the economic activity and stability brought by a university,nor will student income <br /> WWW.STANDARDANDPOORS.COM/RATINGSDIRECT SEPTEMBER 12,2013 17 <br /> 1190266 1300881696 <br />