June 8, 2010 Laura Alexander Senior Vice President 777 Main Street, Suite 1200 Fort Worth, Texas General Obligation Credit Ratings

Member FINRA & SIPC © 2010 First Southwest Company M ECKLENBURG C OUNTY, N ORTH C AROLINA  City’s current general obligation credit ratings –Moody’sAa1 (rating expected on 6/9/10) –Standard & Poor’sAA+ (affirmed on 6/1/10) –FitchAA+ (affirmed on 6/3/10) –All are one notch from being “AAA”  Factors that influence general obligation credit ratings: –Economic (local trends, tax base, diversification of economy) –Administrative (management, financial policies) –Financial (operating results, investments, reserve levels) –Debt (amount, repayment terms, future borrowing plans) General Obligation Credit Ratings 1 CITY OF FORT WORTH, TEXAS

Member FINRA & SIPC © 2010 First Southwest Company M ECKLENBURG C OUNTY, N ORTH C AROLINA 2 CITY OF FORT WORTH, TEXAS Standard & Poor’s Credit Strengths  “Expanding, diversifying economic base and prominent participation in the north-central Texas economy”  “Generally positive financial results with strong reserves”  “Strong financial management practices”  “Favorable and faster than average principal amortization, allowing for additional debt”  Financial Management Assessment (unique to S&P): “Strong” -Many formalized policies -Reserve requirements -Use of fund balance -Capital improvement planning -Debt management -Monthly financial reports -Five year financial forecast which highlight the long term effect of current-year budget decisions

Member FINRA & SIPC © 2010 First Southwest Company M ECKLENBURG C OUNTY, N ORTH C AROLINA 3 CITY OF FORT WORTH, TEXAS Fitch Credit Strengths  “Financial performance benefits from strong fiscal stewardship and policies, including the requirement that the unreserved general fund balance be at least 10% of spending.”  “The city’s debt profile is moderate and the pace of amortization is rapid.”  “The metropolitan economy is diverse and, although area unemployment has risen, rates remain below the national average.”

Member FINRA & SIPC © 2010 First Southwest Company M ECKLENBURG C OUNTY, N ORTH C AROLINA 4 CITY OF FORT WORTH, TEXAS Credit Considerations Standard & Poor’s  “Expectation that the city will sustain its sound financial position…”  “Rating stability remains dependent on the receipt of audited results that are consistent with monthly financial results and management’s financial projections…” Fitch  “Given the current economic downturn and its impact on key operating revenues, achieving structural balance and preserving financial reserves are crucial to the rating.”  “Preservation of the 10% minimum unreserved fund balance is key to the city’s long-term rating.”  “Adherence to timely reporting requirements and implementation of internal controls and enhanced accounting and reporting systems are important to maintaining fiscal stability.”

Member FINRA & SIPC © 2010 First Southwest Company M ECKLENBURG C OUNTY, N ORTH C AROLINA 5 CITY OF FORT WORTH, TEXAS Looking Forward  The City’s financially conservative policies and practices have been validated by the rating agencies.  The rating agencies’ comments provide valuable insights into the City’s key credit considerations.  These credit considerations are critical to 1.preserving the City’s current credit ratings and 2.maintaining the long term financial health of Fort Worth