Correction: Fitch Rates Build Illinois $150MM Bds 'AA'.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- (This is an updated version of a release sent earlier today. It contains revised information regarding the sale of the bonds.) Fitch assigns the rating of 'AA' to $150 million State of Illinois Build Illinois bonds (sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. revenue bonds), series of June 2006 and is expected to sell on June 6 through negotiation with a syndicate led by Popular Securities. The bonds mature with level annual principal repayment from June 15, 2007-2031 and are callable Callable Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. beginning in 2016. Fitch also affirms the 'AA' ratings of $2.17 billion outstanding parity debt. The rating of Build Illinois bonds reflects the strong debt service coverage provided by pledged state sales taxes, which provides nearly 35% of the general fund's own-source resources. The rating also reflects Illinois' general credit characteristics: a broad economy, which is gaining momentum after a long slowdown; above-average debt levels; a large unfunded pension liability; and constrained finances marked by pension funding pressures. Fitch rates the State of Illinois general obligations 'AA' with a Negative Outlook. Build Illinois bonds are not general obligations of the state but instead are secured by a pledge of moneys in a fund that receives monthly transfers of state sales tax receipts. Sales taxes currently are imposed at a unified state and local rate of 6.25%, with 80% of collections representing the state's share. The bonds' priority claim against sales tax revenues excludes 1.75% of the state sales tax pledged first to Metropolitan Pier and Exposition Authority debt. A debt service reserve equal to 50% of maximum debt service must be fully funded within 24 months of bond issuance. The second largest source of state general revenues, the sales tax generated nearly $7 billion in fiscal year 2005. Pledged revenues, based on fiscal year 2005 actuals, cover outstanding debt service by over 26 times (x) and debt service on this series and other authorized bonds by 19.65x, consistent with the level required for additional issuance. In fiscal year 2006, sales tax growth is projected to be 7%, and year-to-date receipts through May are 6.9% ahead of fiscal year 2005. Sales tax receipts dropped in fiscal year 2001 with a six-month suspension on motor fuel taxes and again in fiscal year 2003, but have averaged nearly 4% growth over the last ten fiscal years. Illinois' economy has gradually gained momentum since 2004. Like the neighboring neigh·bor n. 1. One who lives near or next to another. 2. A person, place, or thing adjacent to or located near another. 3. A fellow human. 4. Used as a form of familiar address. v. Great Lakes Great Lakes, group of five freshwater lakes, central North America, creating a natural border between the United States and Canada and forming the largest body of freshwater in the world, with a combined surface area of c.95,000 sq mi (246,050 sq km). states, Illinois was hit hard by the recent recession and has recovered slower than the nation. Following three years of losses, employment in 2005 was 1% above the 2003 level. April 2006 employment was 0.9% above one year prior. Per capita [Latin, By the heads or polls.] A term used in the Descent and Distribution of the estate of one who dies without a will. It means to share and share alike according to the number of individuals. personal income has grown slowly as well, lagging Lagging Strategy used by a firm to stall payments, normally in response to exchange rate projections. national rates, but is now 104% of the U.S. level. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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