Printer Friendly

MOODY'S CONFIRMS 'A1' RATING FOR MICHIGAN GENERAL OBLIGATION BONDS

 MOODY'S CONFIRMS 'A1' RATING FOR MICHIGAN GENERAL OBLIGATION BONDS
 NEW YORK, June 2 /PRNewswire/ -- Effective today, Moody's Investors Service has confirmed the "A1" rating assigned to the state of Michigan general obligation bonds in connection with an offering of $248 million bonds this week.
 Populous and highly industrialized, Michigan experienced severe, prolonged economic and financial difficulties in the late 1970s and early 1980s. Financial reserves were restored with economic recovery later in the 1980s, but personal incomes have not regained the above- average status they once held. Debt position is sound, with debt ratios and the claim of debt on revenues both moderate.
 The current economic downturn has strained financial operations. In fiscal 1991, a budget gap of over $1.8 billion was closed predominantly through non-recurring actions. While the fiscal 1992 budget, as originally adopted, relied for budget balance on a smaller amount of non-recurring items and focused on spending restraint, during the year a budget gap of over $800 million developed. Budgetary assumptions of a modest recovery beginning in early calender year 1992 were not realized. The state has acted to close this gap, but nearly all of the revenue and spending actions agreed upon are non-recurring.
 Revenue realization remains susceptible to continued economic weakness, but the state has identified an additional $50 million in contingent resources should further budgetary imbalance emerge. Consensus revenue estimates for fiscal 1993 are predicated on modest economic recovery. The state also faces further fiscal challenges in adapting to major auto industry restructuring and reimbursing schools for lost property taxes, should a November ballot proposition pass.
 General obligation bonds outstanding, including current offering: $410,133,000. Net tax supported debt including current offering: $2,858,251,000.
 -0- 6/2/92
 /CONTACT: Robert Kurtter, 212-553-4453, or Steven Hochman, 212-553-0338, both of Moody's/ CO: State of Michigan ST: Michigan IN: SU: RTG


CK-PS -- NY035 -- 6230 06/02/92 12:29 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:Jun 2, 1992
Words:317
Previous Article:OMNI ANNOUNCES THE PURCHASE OF BONSTEEL LUMBER COMPANY
Next Article:GAS PRICE .7 CENT HIGHER IN ONE WEEK, AAA REPORTS


Related Articles
MOODY'S AFFIRMS A1 RATING ON GENERAL OBLIGATION BONDS OF PALM BEACH COUNTY SCHOOL DISTRICT, FLORIDA
MOODY'S ASSIGNS AN A1 RATING TO CLARK COUNTY, NEVADA GENERAL OBLIGATION (LIMITED TAX) TRANSPORTATION IMPROVEMENT BONDS DATED JUNE 1, 1992
MOODY'S REVIEWS HOSPITAL RATINGS IN MICHIGAN
MOODY'S CONFIRMS RATING ON THE CITY OF LOS ANGELES, CALIFORNIA GENERAL OBLIGATION BONDS AT AAA JUDGMENT OBLIGATION BONDS RATED AA1
MOODY'S LOWERS ILLINOIS GENERAL OBLIGATION BOND RATING FROM 'AA1' TO 'AA'; ASSIGNS 'MIG 1' RATING TO CERTIFICATES OF AUGUST 1992
MOODY'S CONFIRMS THE 'A1' RATING ON COOK COUNTY'S GENERAL OBLIGATION BONDS CITING NEW SALES TAX AS POSITIVE CREDIT FACTOR
MOODY'S LOWERS SAN DIEGO COUNTY LEASE DEBT RATINGS FROM A1 TO A
MOODY'S LOWERS SAN DIEGO COUNTY LEASE DEBT RATINGS FROM A1 TO A
MOODY'S LOWERS RATING ON ALAMANCE COUNTY, NORTH CAROLINA GENERAL OBLIGATION BONDS FROM 'A1' TO 'Aa'
MOODY'S ASSIGNS 'A1' RATING TO NEW GENERAL REVENUE BONDS FOR MICHIGAN STATE UNIVERSITY

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