MOODY'S LOWERS NEW HAMPSHIRE GENERAL OBLIGATION BOND RATING TO Aa FROM Aa1
MOODY'S LOWERS NEW HAMPSHIRE GENERAL OBLIGATION BOND RATING TO
Aa FROM Aa1
NEW YORK, Nov. 11 /PRNewswire/ -- Moody's Investors Service today lowered the rating assigned to New Hampshires general obligation bonds from Aa1 to Aa. The state is offering $60 million of general obligation capital improvement bonds, 1991 Series B (College Savings Bond Program) the week of Nov. 18. The rating change also affects all state- guaranteed bonds of local government units in the state and of the New Hampshire Municipal Bond Bank. A list of affected local government bond ratings will follow.
Economic weakness of recent years has translated into financial problems, with the state recording an accumulated deficit in fiscal 1990 which deepened in 1991, and operations indicating continued financial stress in the current fiscal year. The effects of the national economic recession are worsened in New Hampshire by real estate property deflation, bank failures affecting a significant share of bank assets and consequent reduced access to credit. These effects may persist for a protracted period of time.
While the state's financial difficulties are exacerbated by the economic sensitivity of its revenues, confidence in its continued ability to meet debt obligations is provided by expenditure and debt policies which remain conservative.
General obligation bonds outstanding, including current offering: $566,070,000.
/CONTACT: George W. Leung, 212-553-0342, or Steven Hochman, 212-553-0338, of Moody's Public Finance Department/ CO: ST: New Hampshire IN: SU: RTG KD-KW -- NY067 -- 3154 11/11/91 16:34 EST