Printer Friendly

AUSTIN (TX) GO ISSUES RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --

 AUSTIN (TX) GO ISSUES RATED 'AA' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Sept. 17 /PRNewswire/ -- Austin (TX)'s $52.5 million public improvement bonds Series 1992, $5.4 million certificates of obligation Series 1992, and $4.2 million public property finance contractual obligations Series 1992 are rated 'AA' by Fitch. The issues will be sold competitively on Sept. 22. The 'AA' rating on $470.3 million in outstanding tax-supported debt is affirmed. The credit trend is stable.
 Austin's credit strength lies in the economic importance of the state capital and the University of Texas, and the stability each provides, as well as ongoing economic development despite the national recession. Nearly all economic indicators have recovered fully from a downturn in the mid-to-late 1980s.
 Only the city's real estate sectors and hence its tax base are still weak overall, although areas of improvement are evident. Employment in the Austin Metropolitan Statistical Area (MSA) has exhibited steady growth for more than three years. Total employment is now 8.2 percent above the 1986 peak. Unemployment remains below the U.S. average, rising only slightly to 4.7 percent in 1991. Monthly data for 1992 show these positive results continuing. Office vacancy rates in Austin have fallen to about 19 percent from a 34 percent peak, and are approaching the 17 percent national average. Home sales activity increased significantly in each of the last three years, with another gain is expected this year. The average sales price rose in 1991 for the first time since 1986, but the current price remains about 9 percent below the 1986 high. The closing of Bergstrom Air Force Base, which is underway and will be completed over the next year, likely will have some dampening effect on the economy, but should not have a dramatic impact.
 The city's financial operations continue to be sound despite declines in the property tax base. Sales tax performance has been good, benefiting from a statewide expansion of the base and the return of strong trade activity. The city ended fiscal 1991 with a $23.1 million general fund balance, equal to 10.2 percent of operating expenditures. Projections for fiscal 1992, which ends Sept. 30, show nearly break even operating results and another sound ending balance.
 Austin's overall debt levels are high, with debt service expense representing nearly 19 percent of the operating budget. Overall debt is $2,207 on a per capita basis and 6.1 percent of property value.
 -0- 9/17/92
 /CONTACT: Amy S. Doppelt of Fitch, 212-908-0514/ CO: ST: Texas IN: SU: RTG


AH -- NY093 -- 0867 09/17/92 17:10 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 17, 1992
Words:437
Previous Article:AMWAY DONATES OVER $1 MILLION IN PRODUCTS FOR INTERNATIONAL AID HURRICANE RELIEF EFFORT
Next Article:BONE HEALTH INC. & DEPRENYL RESEARCH LIMITED ANNOUNCE SMITHKLINE BEECHAM HAS TRANSFERRED BACK TO LUNAR CORP. ALL ITS RIGHTS TO ONE-ALPHA D-2


Related Articles
AUSTIN, TEXAS $27.9 MILLION TAX-BACKED BONDS RATED
AUSTIN, TEXAS PUBLIC IMPROVEMENT BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
DUKE POWER $275 MILLION DEBT RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
AUSTIN (TX) COMBINED UTILITY SYSTEM REVENUE REFUNDING BONDS 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
HOUSTON (TX) VARIABLE RATE DEMAND GO BONDS RATED 'AA/F-1+' BY FITCH -- FITCH FINANCIAL WIRE (FFW)--
DUKE POWER $200 MILLION SEVEN PERCENT FIRST AND REFUNDING MORTGAGE BONDS 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
Fitch Rates Harris County, Texas's $79 Million Astrodome Refunding Bonds 'A' & 'AA'
Austin Texas $18.4 Million Tax Notes Rated 'AA' By Fitch - Fitch Financial Wire -
PR Newswire Southwest Summary, Wednesday, October 28, to 6:00 EDT.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters