Fitch Rates $125MM Ohio Higher Education GO Rfdg Bonds '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 -- 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. assigns an 'AA+' rating on up to $125 million State of Ohio higher education higher education Study beyond the level of secondary education. Institutions of higher education include not only colleges and universities but also professional schools in such fields as law, theology, medicine, business, music, and art. general obligation (GO) bonds, series 2006C. The bonds are expected to sell via negotiation on Dec. 7 with a syndicate led by Citigroup and NatCity Investments, Inc. Issue details will be determined upon final negotiation. Fitch also affirms the 'AA+' rating of approximately $6.9 billion of outstanding GO bonds of the state. The Rating Outlook is Stable. The state of Ohio has a demonstrated record of maintaining fiscal balance and moderate, rapidly amortizing debt burden. The state's economy is broad, and continues to grow since emerging from recession in 2004. Although job growth has been slower in recent months, increases in services continue to offset declines in manufacturing. Ohio's debt burden remains moderate; as of November 2006, tax-supported debt of $10.9 equals 3% of 2005 personal income. Ohio amortizes its debt rapidly, 67% in ten years. The current issue is expected to refund portions of two prior series issued under a voter-approved, 1999 constitutional program authorizing GO debt to support state higher education institutions. Debt service under the program is subject to the constitutional limit of 5% of general revenue funds and lottery receipts. The fiscal 2006-2007 biennial budget incorporated wide-ranging tax reforms, including a 5-year, phased-in income tax cut, a broader corporate franchise tax, and a cut in the 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. rate to 5.5%, from 6%. Initially expected to constrain revenue growth, fiscal 2006 actual revenues were stronger than planned, with tax receipts 1.3% ahead of budget on personal and corporate franchise tax strength. Sales and use tax Sales and use tax refers to:
As a result of strength in fiscal 2006, Ohio accelerated scheduled income tax cuts at a cost of $210 million in fiscal 2007. Accordingly, the fiscal 2007 revenue forecast was lowered 0.5%, with tax receipts reduced 0.8%, reflecting accelerated income tax cuts, plus a more conservative outlook on sales taxes based on fiscal 2006 results. Fiscal 2007 actual collections through October show tax receipts over budget 0.4%. Personal income receipts are 1% over budget, reflecting strength in withholding and estimate payments. Sales tax collections remain weak, at 3.1% below the downwardly revised fiscal 2007 estimate, and 0.6% below last year's level. The state attributes the falloff fall·off n. A reduction or decrease: a falloff in car sales. Noun 1. falloff - a noticeable deterioration in performance or quality; "the team went into a slump"; "a gradual slack in to weakness in consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. related to general economic uncertainty. The state's economy is experiencing slow job growth since the recession earlier in this decade. Employment rose 0.4% in 2005 compared to 1.5% for the U.S. as a whole. October 2006 employment was 0.2% above October 2005, compared to 1.4% for the U.S., the smallest monthly increase to date during 2006. Strongest growth is being recorded in service sectors, particularly leisure and hospitality, up 2%; educational and health services health services Managed care The benefits covered under a health contract , up 1.3%; and professional and business services, up 1%. By contrast, manufacturing employment continues to drop, down 1.1% in October 2006. Manufacturing declines reflect ongoing weakness among domestic auto makers and parts suppliers. Employment in the retail sector is also weak, down 1.6% in October year-over-year. Unemployment is well over the U.S. rate, at 5.1% in October, versus 4.4% in the U.S. Ohio's personal income growth trails the U.S., with second quarter 2006 rising 5.6%, behind the U.S. at 7.3%. 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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