Fitch Rates Wyoming's $250MM Education Fund TRANs 'F1+'.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 -- The state of Wyoming's $250 million education fund tax and revenue anticipation notes Revenue Anticipation Note (RAN) A short-term municipal debt issue that will be repaid with anticipated revenues, such as sales taxes, from the project. (TRANs), series 2006A, are rated 'F1+' by 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. . The notes are selling competitively on June 21, will be dated July 3, 2006, and mature June 27, 2007. Note proceeds will provide for projected cash flow needs within the state's Education Fund in anticipation of taxes and other revenues to be received later in fiscal year 2007. The Education Fund receives earmarked revenues to pay the guaranteed foundation program amounts to various local school districts having insufficient amounts from local sources to meet uniform statewide educational standards. The program was developed by the state legislature A state legislature may refer to a legislative branch or body of a political subdivision in a federal system. The following legislatures exist in the following political subdivisions: 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- . The notes are payable from cash income credited to the Education Fund and investment earnings thereof. The Education Fund's major revenue sources include a statewide property tax, transfers of interest earnings from the common school account, federal mineral royalties, and general fund transfers. The notes represent a sizeable 39% of the total $643.1 million in projected revenues. The rating reflects conservatively estimated revenues and sizable amounts of available funds. Additionally, the legal structure requires monthly cash projections and mandates that funds be set aside immediately if a specified revenue shortfall is projected. Support from the general fund is also available but has not been required in the last few fiscal years. This issuance is the seventh note borrowing for the Education Fund and is necessary because of statutory funding changes, including required distributions of two-thirds of aid payments made within the first four months of the fiscal year. In fiscal 2007 projected state education payments rise significantly and the distribution of a portion of federal mineral royalty payments was changed from monthly to the last two months of the fiscal year increasing cash flow disparity and vulnerability to mineral price changes. The notes comprise an enlarged 32% of expected fiscal 2006 cash flow. After payment of the $250 million notes now offered, the projected ending cash balance at June 30, 2007 is $100 million, providing note coverage of 1.4 times (x) and a cash flow safety margin of 13%. This balance excludes the additional $97 million of projected revenues to be transferred to two scholarship funds created in fiscal 2006. No transfers to the scholarship funds will be made if the Education Fund balance is less than $100 million on each July 1, beginning July 1, 2005. The notes are well protected by available funds, some $60 million from the general fund, along with another $7.3 billion in other long-term available funds, including $1.3 billion from the common school permanent land fund. The legal structure is strong, with the treasurer covenanting to set aside the necessary funds to repay the notes on June 15, 2007, 12 days in advance of note maturity. While no revenue impoundments are required prior to this date, other covenants protect noteholders. The treasurer covenants to require the state auditor State auditors are executive officers of U.S. states. The office usually is created by the state constitution.
Projections can be made with varying levels of detail, but any cash flow projection for a business entails beginning in August. If those projections indicate that the net debt service requirement exceeds 85% of expected revenues, the Treasurer will immediately begin impounding im·pound tr.v. im·pound·ed, im·pound·ing, im·pounds 1. To confine in or as if in a pound: capture and impound stray dogs. 2. revenue until the note repayment account is sufficient to repay the notes. 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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