Fitch Rates State of Washington's $581MM GO 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 fitch: see polecat. assigns Individuals to whom property is, will, or may be transferred by conveyance, will, Descent and Distribution, or statute; assignees. The term assigns is often found in deeds; for example, "heirs, administrators, and assigns to denote the assignable nature of an 'AA' rating to $581 million State of Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. general obligation (GO) bonds, which will sell competitively on July 18. Fitch also affirms the 'AA' rating of $10.5 billion outstanding Washington GO bonds. The Rating Outlook is Stable. The offering consists of three series, for separate bids as follows: -- $333,165,000 various purpose GO bonds, series 2007A; -- $176,060,000 motor vehicle fuel tax GO bonds, series 2007B; -- $71,900,000 GO bonds, series 2007T (Taxable). Washington's 'AA' bond rating reflects the state's sound debt and financial policies and robust economic and financial performance. These strengths are tempered by a highly concentrated revenue system, with an income tax constitutionally forbidden, as well as above-average debt levels. The economy is generally broad, although Fitch expects that aerospace will remain a significant presence and that employment in this industry will continue to be cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. . Capital needs are substantial, and the state has initiated a large capital borrowing program to fund significant transportation needs, supported by a 9.5-cent gas tax increase. There is a somewhat active initiative and referendum In U.S. politics, initiative and referendum is a process that allows citizens of many U.S. states to vote directly on proposed legislation. Initiative and referendum, along with recall elections and primary elections, is one of the signature reforms of the Progressive Era. environment. The pace of economic growth in Washington has accelerated. After rising 2.9% in 2005, nonfarm employment was up 3.2% in May 2006 compared to May 2005, more than double 1.4% for the U.S., with particularly large gains in aerospace (11.4%), construction (9.4%), and professional and business services (5.8%). Boeing Co., the state's largest private employer, is expanding significantly, although levels remain well below the 1998 employment peak, and employment in software industries displays steady growth. These trends, coupled with strong growth in housing and construction, have fueled the recovery of the Seattle area economy, which had lagged the rest of Washington in the recovery but once again leads the state (employment up 4% in May). The strong real estate market has been key to robust economic and revenue growth, and state financial forecasts reasonably anticipate more restrained growth. Revenue forecasts for the current biennium bi·en·ni·um n. pl. bi·en·ni·ums or bi·en·ni·a A two-year period. [Latin : bi-, two; see bi-1 + annus, year; see at- have been steadily increased, most recently by $524 million in June. With 10.6% growth in general fund-state cash receipts in the 2003-2005 biennium, the general fund-state balance at June 30, 2005 was $870 million, or about 7.2% of annual cash receipts. Based on the most recent forecasts, including the impact of the supplemental budget passed in March, the projected ending balance for the current biennium is $745 million, and three new reserves add another $740 million. Projected general fund-state cash receipts for the biennium total $27 billion, or 15.3% above those for the 2003-2005 biennium. Construction and real estate related revenue sources account for the bulk of recent increases. Debt levels are trending into the upper moderate range, with net tax-supported debt of $11.6 billion equal to 5.2% of 2005 personal income. Debt is now almost exclusively GO. Motor vehicle fuel tax GO bonds, including the 2007B bonds, are serviced from that revenue source, which covers debt service by about 4.1 times (x). The 2005 legislature passed a 9.5 cent increase to the then 28 cent gas tax, phased in over four years starting July 1, 2005. An initiative to repeal The Annulment or abrogation of a previously existing statute by the enactment of a later law that revokes the former law. The revocation of the law can either be done through an express repeal the motor vehicle fuel tax increase was defeated in November 2005, allowing the state to proceed with a 16-year, $8.5 billion transportation improvement package. The 2007A bonds are expected to mature July 1, 2014-2031 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 July 1, 2016. The 2007B bonds are expected to mature July 1, 2007-2031 and are callable beginning July 1, 2016. The 2007T bonds are expected to mature July 1, 2007-2014 and are not callable. 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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