Printer Friendly

MINNESOTA $241.9 MILLION GO BONDS RATED 'AA+' BY FITCH -- FITCH FINANCIAL WIRE --

 MINNESOTA $241.9 MILLION GO BONDS RATED 'AA+' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, July 2 /PRNewswire/ -- Minnesota's $241.9 million General Obligation State Refunding Bonds, to be offered for bids on July 7, are rated 'AA+' by Fitch. The 'AA+' rating assigned to $1.7 billion outstanding GO bonds is affirmed. The credit trend is stable. The bonds are due Aug. 1, 1992-2007, and become callable Aug. 1, 2002, at par. Proceeds will be used to advance refund $230.5 million general obligation bonds.
 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 increase threatened a deficit. The prompt identification of a problem was aided by the practice of request reforecasting. Action was taken both 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 June 30, 1993.
 Net tax-supported debt amounts to $1.7 billion, a very moderate $397 per capita and 2.1 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- 7/2/92
 /CONTACT: Claire G. Cohen of Fitch, 212-905-0552/ CO: ST: Minnesota IN: SU: RTG


LR -- NY057 -- 6266 07/02/92 15:14 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 2, 1992
Words:302
Previous Article:SCIENCE APPLICATIONS INTERNATIONAL CORP. ACQUIRES GENERAL SCIENCES CORP.
Next Article:INTEGRA BANKS LOWER PRIME RATE


Related Articles
MONONGAHELA POWER $50 MILLION 8.625 PERCENT BONDS RATED
AFRICAN DEVELOPMENT BANK $200 MILLION SUBORDINATED DEBT RATED "AA+" -- FITCH FINANCIAL WIRE --
DUKE POWER $275 MILLION DEBT RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
OREGON'S $51.4 MILLION G.O. BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
NORTHERN STATES POWER $350 MILLION SHELF DEBT RATED 'AA' BY FITCH --FITCH FINANCIAL WIRE (FFW)--
MINNESOTA $140 MILLION GENERAL OBLIGATION BONDS RATED 'AA+' BY FITCH -- FITCH FINANCIAL WIRE --
OTTER TAIL POWER $50 MILLION FIRST MORTGAGE BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
DUKE POWER $200 MILLION SEVEN PERCENT FIRST AND REFUNDING MORTGAGE BONDS 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
NORTHERN STATES POWER COMPANIES $100 MILLION FIRST MORTGAGE BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
Florida $250 Million PECO Bonds Rated 'AA' By Fitch -- Fitch Financial Wire --

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters