On May 22, 2006 the Seminole Tribe of FL (the tribe) filed a claim in
Broward County, FL court stating that the financial services agreement (FSA)
between the tribe and Power Plant Entertainment, LLC. (PPE) originally
executed in 2000, is illegal. Under the terms of the FSA the tribe pays PPE
30% of net revenues from three of the tribe’s six gaming facilities; Tampa
Hard Rock, Hollywood Hard Rock and Seminole Indian Casino, Hollywood
(together Tampa/Hollywood). The remaining 70% flows to the tribe and is
pledged to bondholders. The tribe continues to honor its obligation to PPE
on a monthly basis and has expressed its intention to maintain such payments
pending a court decision on the claim. PPE has until Monday, June 12th to
respond to the tribe’s claim and to date, has not filed any official
correspondence.

Fitch believes that rating action at this time would be premature. If PPE
files any correspondence by the June 12, 2006 deadline Fitch will conduct
further review and provide additional comments to the market. Any potential
impairment of pledged revenues or deterioration of the general credit
profile of the tribe could create negative pressure on the rating.

Fitch assigned an ‘A-‘ rating to the tribe’s Gaming Division Revenue Bonds
Series 2005 A & B on September 26, 2005. Security for the bonds is primarily
derived from earnings before interest, taxes, depreciation and amortization
of the tribe’s Immokalee, Brighton and Coconut Creek gaming facilities and
from net revenues of the Tampa/Hollywood facilities, excluding payments to
PPE. Credit strengths supporting the ‘A-‘ rating include strong legal
protections, ample debt service coverage, solid competitive position and
revenue diversity across six gaming facilities and sound financial
management at both the governmental and gaming operations.

At the time of the rating assignment Fitch identified the key credit risk as
uncertainty regarding the tribe’s contractual relationship with PPE. Prior
to filing the claim in court, the tribe and PPE were negotiating a buy-out
of the FSA and Fitch was concerned that any bonded settlement by the tribe
could reduce debt service coverage. This credit risk is still applicable.