MOODY'S CONFIRMS 'Baa' RATING ON CAMDEN, N.J.'S UNENHANCED GENERAL OBLIGATION DEBT
MOODY'S CONFIRMS 'Baa' RATING ON CAMDEN, N.J.'S UNENHANCED
GENERAL OBLIGATION DEBT
NEW YORK, Nov. 26 /PRNewswire/ -- Effective yesterday, Moody's Investors Service confirmed the "Baa" rating on Camden's unenhanced debt and assigned an "A" rating to the city's $35.5 million sale of Qualified Fiscal Year Adjustment Bonds expected to be sold through negotiation on Dec. 3. Security for bonds issued under the state's Qualified bond program is enhanced by the payment of debt service directly by the state treasurer from withheld state aid which would otherwise be available for city operations.
In confirming the "Baa" rating, Moody's noted that Camden, which serves an extremely poor population, is dependent on state support for continued viability. The three fold increase in debt needed to fund the state mandated change in fiscal year and restore a current fund deficit to a balanced position sharply increases the city's already high debt burden and will place additional strain on financial operations in order to support debt service payments. The credit outlook for the city is closely linked to the state's willingness and ability to continue its long-standing commitment to maintain the city's fiscal integrity.
/CONTACT: Marci Herzlinger, 212-553-7166, Marie S. Pisecki, 212-553-7120, or Michael Johnston, 212-553-7810, all of Moody's/ CO: ST: New Jersey IN: SU: RTG FC-KW -- NY070 -- 7449 11/26/91 15:56 EST