Printer Friendly

MINNESOTA $90.6 MILLION GENERAL OBLIGATION BONDS RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Oct. 6 /PRNewswire/ -- Minnesota's $90,580,000 General Obligation State Refunding Bonds for bids on Oct. 13 are rated 'AAA' by Fitch. The state's $1.7 billion outstanding 'AAA' general obligations are affirmed and the credit trend remains stable. The new bonds will be due Aug. 1, 1995-2011 and are callable beginning Aug. 1, 2003 at par. They are entirely for refunding.
 Minnesota's high credit standing has always been based on several strengths, which have been incrementally enhanced through the consistent development and application of conservative debt and financial policies. Debt is low to moderate and should continue at its present level under the policy guidelines limiting debt to 2.5 percent of personal income, with debt service appropriations held to 3 percent of nondedicated revenues. Financial policies include maintenance of a cash reserve, frequent reforecasting, which allows prompt reaction to changing conditions, the implementation of mandatory spending growth limits for fast growing programs and reforms in the budgetary process for both operations and the capital program.
 Minnesota faced revenue shortfalls in the first year of the 1991-93 biennium and took both revenue and expenditure measures to rebalance its budget. Growth resumed in 1992-93 and the year closed on June 30, with a balance of about $657 million, of which $360 million will be retained in reserve and $281 million used for operations in 1993-95. The budget for the current biennium is in balance and the use of surplus amounts to only about 2 percent of revenues. Cash collections for the first two months of the fiscal year are on target.
 Minnesota was only moderately affected by the recession, with no employment loss registered. Employment has risen at about 2 percent since 1992 and the unemployment rate remains well below the national level. Personal income has also been outpacing the nation and on a per capita basis, the state hovers around the national figure, with a rank of 18 among the states.
 -0- 10/6/93
 /CONTACT: Claire G. Cohen of Fitch, 212-905-0552/


CO: ST: Minnesota IN: SU: RTG

LD -- NY090 -- 9524 10/06/93 17:52 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 6, 1993
Words:350
Previous Article:MFS AMONG FIRST NON-LOCAL EXCHANGE CARRIERS TO BECOME MEMBER OF ALLIANCE FOR TELECOMMUNICATIONS INDUSTRY SOLUTIONS
Next Article:LAIDLAW CHIEF TO TENDER RESIGNATION

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