CHICAGO -- The Cleveland-Cuyahoga County Port Authority, Ohio, $1.06 million Port of Cleveland Bond Fund series 2004C has been assigned a "BBB+" rating by Fitch Ratings. Dated the date of issuance, the series 2004C bonds will be privately placed by Robert W. Baird & Co. Inc. during the week of April 26.In addition, Fitch affirms the 'BBB+' rating on the authority's $52.7 million outstanding bond fund development revenue bonds. The Rating Outlook is Stable.The authority will use the proceeds of the series 2004C bonds to purchase land and two existing buildings in Eastlake, Ohio. The project will be leased to Tru-Fab Technology Inc., an Ohio corporation, for customized fabrication, machining, welding, sheet metal fabrication, and other related uses.The 'BBB+' rating reflects the bond fund's sizable reserves and satisfactory underwriting standards and the economic strength of the Cleveland metropolitan area. While many of the fund's loans are to speculative-grade borrowers, the program's reserve requirements provide substantial liquidity to meet bond payments in the event of significant defaults by program participants.The bond fund promotes economic development by loaning revenue bond proceeds to small- and medium-sized industrial, commercial, and nonprofit enterprises primarily in Cuyahoga County. The authority can also make loans for the bond fund in 47 other counties in Ohio. All participants must meet the underwriting criteria of the authority and establish a reserve equal to at least 10% of the original par amount of the loan. Tru-Fab Technology Inc., which is the borrower in this transaction, will meet this requirement from bond proceeds.In addition to the primary reserves provided by the borrowers totaling $5.9 million, the program maintains reserves totaling $9 million: a $4 million cash reserve established from program funds, and a $5 million irrevocable letter of credit from Fifth Third Bank, Northwestern Ohio, and N.A. The Fifth Third LOC expires March 1, 2012, subject to possible two-year extensions. The letter provides the bond fund with a revolving line of credit that supplements the primary and other program reserves. The bank's lien on bond fund collateral is subordinate to bondholders.After this issue, the bond fund will have 16 loans outstanding totaling $53.7 million. The authority, which Fitch assigns an implied revenue bond rating of "BBB," is currently the program's largest borrower and represents 22.8% of total outstanding loans. Total primary and program reserves, including the program Letter of Credit, equal $14.9 million, or 28% of the principal of all outstanding loans."