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Fitch Downgrades St. Paul Port Authority, MN's (State Lease) Bonds to 'AA'; Outlook Stable.

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
 -- Fitch Ratings Fitch Ratings

An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris.
 downgrades the rating on the following St. Paul St. Paul

as a missionary he fearlessly confronts the “perils of waters, of robbers, in the city, in the wilderness.” [N.T.: II Cor. 11:26]

See : Bravery
 Port Authority, MN bonds to 'AA' from 'AA+' as part of its continuous surveillance effort:

--St. Paul Port Authority (State of Minnesota Office Building) lease revenue bonds.

The Rating Outlook is Stable.

KEY RATING DRIVERS

--Bond payments require state legislative appropriation, resulting in a rating one notch below the state's 'AA+' general obligation (GO) rating.

--The downgrade Downgrade

A negative change in the rating of a security.

Notes:
For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA.
 to 'AA' reflects the July 2011 downgrade of the state of Minnesota's GO debt rating.

--Minnesota's economy is balanced, closely resembling the nation's.

--The state's debt position is strong, with a debt burden that is on the low end of the moderate range at about 2.7% of personal income and rapid amortization. The state has conservative debt policies.

--Minnesota's revenue structure is subject to volatility, and finances are pressured by a large responsibility for local units.

SECURITY

The bonds are secured by lease rental payments by the state, subject to biennial legislative appropriation.

CREDIT PROFILE

Proceeds of the bonds, which were sold in 2002 and 2003, funded construction of two office buildings and related parking facilities in the capitol area. The projects were authorized by the legislature, in conjunction with a GO authorization to develop a related laboratory facility adjacent to one of the buildings as part of a comprehensive plan for locating state agencies as well as a capitol area master plan. The office buildings are separate projects with separate indentures, lease agreements and appropriations, although the payment source is the same, the state's general fund. The provisions in the documents are also nearly the same. Lease purchase financing, rather than general obligation bonding, was undertaken because of legislative GO debt limits.

For more information on the State of Minnesota, please see Fitch Research 'Fitch Downgrades Minnesota GOs to 'AA+'; Outlook Stable' dated July 7, 2011.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Tax-Supported Rating Criteria', dated Aug. 15, 2011;

--'U.S. State Government Tax-Supported Rating Criteria', dated Aug. 15, 2011.

Applicable Criteria and Related Research:

Tax-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648898

U.S. State Government Tax-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648897

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Publication:Business Wire
Geographic Code:1U2NY
Date:Aug 23, 2011
Words:578
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