Printer Friendly

MASSACHUSETTS GENERAL OBLIGATION BONDS RAISED TO 'A+' BY FITCH -- FITCH FINANCIAL WIRE--

 NEW YORK, Oct. 13 /PRNewswire/ -- The Commonwealth of Massachusetts' $8.1 billion outstanding general obligation bonds are revised to "A+" from "A" by Fitch. The action is taken in connection with a $200 million offering of General Obligation Bonds, Consolidated Loan of 1993, Series B. The credit trend remains stable.
 The rating change also applies to $1.0 billion outstanding Dedicated Income Tax Bonds, Series 1990A, and $103.8 million outstanding Special Obligation Highway Bonds, as well as to bonds of the Massachusetts Bay Transportation Authority, the Massachusetts Convention Center Authority, the Boston Metropolitan District and the Woods Hole, Martha's Vineyard, & Nantucket Steamship Authority. The better financial position and the rebuilding of the reserves, together with economic bottoming and the remaining substantial economic resources, improved credit quality, leading to the revision.
 The $200 million issue will be offered competitively on Oct. 19. Dated Oct. 1, 1993, bonds will be due Oct. 1, 1994-2013, and will be optionally callable on Oct. 1, 2003, at 102 percent; the $124,165,000 bonds maturing after Oct. 1, 2003, may be designated by bidder as one or two term maturities, with mandatory sinking fund redemption.
 Emerging from the most severe recession of several decades, Massachusetts returned to financial stability as a result of two years of severe cutbacks and continuation of the very conservative tax revenue estimation practices. The commonwealth closed three years in a surplus position, has a balanced budget for 1993-94, rebuilt reserves to a level equal to 2.7 percent of 1992-93 revenues, and continues to achieve tax collections well in excess of estimates and at levels belied by economic indicators.
 Debt ratios are high at 8.3 percent of personal income and will likely remain so, compounded by high debt service costs and a slowing retirement schedule. While employment declines continue, they are at considerably lower rates, and personal income gains are narrowing the gap from the national average. Some uncertainties remain, including the ability to continue to control program expansion and spending pressures as well as permanent reconciliation of functional responsibilities and costs with its localities.
 -0- 10/13/93
 /CONTACT: Claire G. Cohen, 212-908-0552, or Ruth Corson Maynard, 212-908-0596, both of Fitch/


CO: ST: Massachusetts IN: SU: RTG

TW -- NY098 -- 1833 10/13/93 16:10 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 13, 1993
Words:379
Previous Article:FEDERAL COURT DISMISSES MAGELLAN COUNTERCLAIMS
Next Article:DUFF & PHELPS ADDS TELE-COMMUNICATIONS, INC. TO RATING WATCH-UP

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters