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MINNESOTA $140 MILLION GENERAL OBLIGATION BONDS RATED 'AA+' BY FITCH -- FITCH FINANCIAL WIRE --

MINNESOTA $140 MILLION GENERAL OBLIGATION BONDS RATED 'AA+' BY FITCH --
 FITCH FINANCIAL WIRE --
 NEW YORK, June 6 /PRNewswire/ -- The State of Minnesota's $140 million general obligation state various purpose bonds, to be offered for bids on June 16 are rated "AA+" by Fitch, it was announced today. The "AA+" rating assigned to $1.6 billion outstanding G.O. bonds is affirmed. The credit trend is stable. The bonds are due Aug. 1, 1992-2011, and become callable Aug. 1, 2002 at par.
 Minnesota's high credit standing is based on several strengths, including prudent and conservative policies regarding debt incurrence and financial stability. The state's broad-based economy, with positive wealth levels, is well able to support existing and planned bonded debt.
 Frequent re-forecasting and prompt corrective action have averted a recession-induced deficit threatened in this biennium and allowed preservation of a reserve.
 The recession has affected Minnesota, but only moderately. Growth has been subdued and in February, a lowered revenue estimate together with some expenditure increases threatened a deficit. The prompt identification of a problem was aided by the practice of request reforecasting. Action was taken to increase revenues and reduce expenditures. This, together with use of part of the reserve, has restored balance. A reserve of $240 million, a little less than 2 percent of biennial revenues, is expected at year-end 1993.
 Net tax-supported debt amounts to $1.8 billion, a very moderate $417 per capita and 2.2 percent of personal income. The state intends to enter into commitments with Northwest Airlines, of which $175 million will represent direct exposure. Even so, debt will remain within affordable limits.
 -0- 06/11/92
 CONTACT: Claire G. Cohen of Fitch 212-908-0552 CO: STATE OF MINNESOTA ST: MN -- NY047 -- X615 06/11/92
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Publication:PR Newswire
Date:Jun 11, 1992
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