Printer Friendly

MOODY'S CONFIRMS STATE OF MINNESOTA'S Aa GENERAL OBLIGATION BOND RATING DIVERSE ECONOMIC BASE AND SOUND FINANCIAL RECORD CITED;

MOODY'S CONFIRMS STATE OF MINNESOTA'S Aa GENERAL OBLIGATION BOND RATING
 DIVERSE ECONOMIC BASE AND SOUND FINANCIAL RECORD CITED;
 NEW YORK, June 12 /PRNewswire/ -- Effective today, Moody's Investors Service confirmed the Aa rating on the state of Minnesota's general obligation bonds. Moody's assigned the rating in conjunction with $140 million general obligation bond sale scheduled for bids June 16.
 "The fundamental credit strength behind the state's general obligation pledge is the diverse economic base that provides significant taxable resource support for a moderate amount of debt. Debt management guidelines have been conservative including adherence to self imposed general obligation debt limits. However, potential credit risks posed by the state's debt financing of facilities for Northwest Airlines Inc. (rated Caa) represents a concern. The precedent setting financing remains the subject of taxpayer litigation. Also, if the state should ever have to exercise the guarantee on the general obligation bonds proposed to be issued for the NWA facilities, it would exceed the debt policy guideline of debt service being below three percent of general fund non-dedicated revenues.
 Recession impacts have not been as severe in Minnesota as nationwide and the current sluggish recovery is beginning to improve budgetary outlook. The state has evidenced good discipline in managing operations, including resolving budget imbalances early based on conservative forecasts for the next year. A budget reserve account has been adequately maintained to protect against uncertainties, although it is now projected to be at year end 1993 at its lowest level since 1987.
 The litigation remains unsettled regarding a taxpayer suit challenging the constitutionality of the act that authorized the state to assist Northwest Airlines in financing aircraft maintenance facilities in northern Minnesota. The state has delayed its issuance of bonds for the NWA facility financing, pending outcome of this litigation."
 Amount of parity debt outstanding (including this issue): $1,774,330,000.
 -0- 6/12/92
 /CONTACT: Daniel Aschenbach-vice president, 212-553-0880, or George W. Leung, 212-553-0342, both of Moody's/ CO: ST: Minnesota IN: SU: RTG


TQ-LR -- NY060 -- 9754 06/12/92 14:51 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 12, 1992
Words:339
Previous Article:M.D.C. HOLDINGS ANNOUNCES DISMISSAL OF CASE AGAINST DAVID D. MANDARICH
Next Article:STANDARDS & POOR'S CORP. ASSIGNS KENTUCKY CENTRAL LIFE INSURANCE CO. A CLAIMS PAYING ABILITY RATING OF BB


Related Articles
MOODY'S CONFIRMS Aa RATING FOR STATE OF OREGON GENERAL OBLIGATIONS
MOODY'S LOWERS STATE OF CALIFORNIA GENERAL OBLIGATION BONDS TO Aa1 FROM Aaa
MOODY'S CONFIRMS BALTIMORE'S GENERAL OBLIGATION RATING; CITES NEED FOR STRONG MANAGEMENT CONTROLS TO MAINTAIN FISCAL STABILITY
MOODY'S CONFIRMS 'Aa' RATING ON NEW YORK STATE POWER AUTHORITY
MOODY'S CONFIRMS MARYLAND'S 'Aaa' BOND RATING
MOODY'S CONFIRMS AA RATING ON STATE OF OREGON GENERAL OBLIGATION BONDS
MOODY'S UPGRADES RATING ON EAGAN, MINN. GENERAL OBLIGATION BONDS TO 'Aa' FROM 'A1'
MOODY'S RATES NEW YORK STATE GENERAL OBLIGATION BONDS 'A'
MOODY'S CONFIRMS Aa RATING ON STATE OF CALIFORNIA GENERAL OBLIGATION BONDS
MOODY'S LOWERS RATING ON WOODBRIDGE TOWNSHIP, N.J. FROM 'Aa' to 'A1'; CITES SIZABLE ISSUANCE OF FY ADJUSTMENT BONDS AND ECONOMIC SLOWDOWN

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