Fitch Rates $30MM Ohio Mental Health 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 to $30 million State of Ohio mental health capital facilities bonds, series II-2006A. Fitch also affirms the 'AA' rating of $3.3 billion of outstanding appropriation bonds of the state and certain agencies. The bonds are expected to sell through negotiation July 26 with a syndicate led by Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. & Co. and SBK-Brooks Investment Corp. The bonds will be due June 1, 2007-2016. Call provisions are yet to be determined. The 'AA' rating on bonds backed by Ohio's lease appropriations reflects the state's general credit standing, sound lease structures, the broad state purposes of financed projects, and constitutional authorization for these types of bonds. Debt service on mental health lease bonds is paid from appropriations to two departments for lease payments, although the state also pledges patient receipts, principally reimbursements from Medicaid and Medicare. The state's general credit characteristics include a moderate debt burden and a demonstrated record of maintaining fiscal balance. Ohio's general obligation bond rating is 'AA+', and the Rating Outlook is Stable. The state's economy has continued to grow slowly since emerging from recession in 2004, with employment increases in service sectors offsetting ongoing declines in manufacturing. The state's debt burden remains moderate; tax-supported debt equals 2.9% of 2005 personal income, and debt service requires 4.3% of revenues. Ohio amortizes its debt rapidly, 67% in 10 years. Lease provisions are strong. The state treasurer Noun 1. state treasurer - the treasurer for a state government financial officer, treasurer - an officer charged with receiving and disbursing funds issues state obligations to fund the costs of mental health capital facilities, under a program which began in 1971. Debt service is funded by biennial biennial, plant requiring two years to complete its life cycle, as distinguished from an annual or a perennial. In the first year a biennial usually produces a rosette of leaves (e.g., the cabbage) and a fleshy root, which acts as a food reserve over the winter. legislative appropriations. The state also pledges state agency receipts for the treatment or care of mental hygiene mental hygiene, the science of promoting mental health and preventing mental illness through the application of psychiatry and psychology. A more commonly used term today is mental health. and retardation patients. These receipts are projected to total $156 million in fiscal 2006 and $148 million in fiscal 2007, principally Medicaid and Medicare payments Noun 1. medicare payment - a check reimbursing an aged person for the expenses of health care medicare check bank check, check, cheque - a written order directing a bank to pay money; "he paid all his bills by check" . Approximately $246 million in mental health capital facilities bonds is outstanding, prior to this issuance. In total, about 30% of Ohio's tax-supported debt, nearly $3.3 billion of outstanding securities, is supported by biennial lease appropriations. For further information on the State of Ohio, please see today's press release for Ohio third frontier research and development GO bonds, available on the Fitch Ratings web site at 'www.fitchratings.com'. 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. 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