Fitch Releases Report on State Debt Commitments.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. today is releasing a report on State Debt and Exposure to Debt-Like Commitments, authored by Claire G. Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. , Consultant to Fitch's State Ratings Group. The report discusses the various types of debt securities issued by the 50 states, separating them broadly into the categories of general obligation bonds and non-general obligations. All 50 states were found to have some type of debt although 11 do not issue general obligation bonds. Only one state, Vermont Vermont (vərmŏnt`) [Fr.,=green mountain], New England state of the NE United States. It is bordered by New Hampshire, across the Connecticut R. , exclusively uses general obligation bonds and in only eight states, were general obligations 90% or more of net tax-supported debt. The median proportion of general obligations to total tax-supported debt was 70%, when the states without general obligations were excluded. The study found that use of general obligation bonds was overall trending downward although there were exceptions, such as California and Illinois, reflecting large, one-time issues for deficit funding and pension obligations, respectively. Among the factors leading to a choice of debt security are the incentive to avoid seeking voter VOTER. One entitled to a vote; an elector. approval, especially for such unpopular purposes as prisons and office buildings, the availability of revenue sources for transportation funding, including highway-related revenues and federal aid, and greater market acceptance for these types of bonds. Transportation is the major purpose for which non-general obligation bonds are issued. States continue to be conservative in their use of debt as measured by net tax-supported debt as a percentage of personal income. Net tax-supported debt includes all debt that is being serviced by the government, regardless of the identity of the issuer, less any directly issued debt that is self-supporting from operation of a revenue producing enterprise such as a toll road. The median ratio of net tax-supported debt to personal income was found to be 2.7%, and the average was 3.3%. The study also identifies potential debt burdens that could result from the failure of programs to continue to be self-supporting or from the extension of credit to others. The most common types of credit extension are guarantees, provisions for back-up appropriations, access to specified taxes if pledged revenues are insufficient, and the so-called moral obligation, pursuant to which draws on a debt service reserve fund trigger requests for replenishment replenishment the addition of an appropriate quantity of properly prepared solution containing the correct concentration of chemicals to the developer solutions used in radiography. from appropriations. Debt exposure, the total of gross debt and such commitments, is also moderate. The median ratio to personal income is only 4.5%, and the average is 5.0%. Credit extension by the states does not appear to be overused at this time and poses little risk. Few new broad categories have been added in recent years. Housing and bond banks with a moral obligation continue to be the most prevalent. The major area of expansion has been the placing of state direct credit behind local school bonds, reflecting the responsibility of states for education while increasing marketability Marketability A negotiable security is said to have good marketability if there is an active secondary market in which it can easily be resold. marketability The ease with which an investment may be bought and sold in the secondary market. and lowering interest cost. 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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