The rating reflects Houston's increasing tax base values,diversified and growing economy, moderate direct debt burden andnarrowing general fund fiscal margins. The series 2000 bonds,totaling slightly more than $2 million, go on sale today throughsyndication by Bear Stearns. The AA rating on Houston's$1,248,775,000 public improvement bonds and $42,088,000certificates of obligation also has been confirmed.The city'staxable assessed valuations for fiscal 2001 demonstrates a fourthconsecutive year of solid growth. Issued building permits havereached new thresholds, according to Fitch's.

The city's taxable assessed valuation for fiscal 2001 will grow8.5%, mirroring last year's 8.4% growth. In line with theprosperity, the city has for the seventh consecutive year decreasedproperty taxes.

Houston is Texas' largest city and fourth largest in the nationwith an estimated population of more than 1.9 million in 2000. Thecity is a major center for energy, medical, financial, retail,transportation, manufacturing and tourism industries. The Port ofHouston has been ranked first in foreign tonnage and second intotal tonnage among all US ports and seventh in the world.