MOODY'S RATES NEW YORK STATE GENERAL OBLIGATION BONDS 'A'
MOODY'S RATES NEW YORK STATE GENERAL OBLIGATION BONDS 'A' NEW YORK, Sept. 18 /PRNewswire/ -- Moody's Investors Service has confirmed the 'A' rating assigned to New York State's general obligation bonds, in connection with the public sale Sept. 23 of $189.8 million general obligation bonds. In assigning the rating, Moody's cited "the state's credit standing reflects its diverse and substantial economic base, but this strength is offset by structural imbalance of state finances and increasing debt levels. Chronic financial problems weigh most heavily in the evaluation of New York State's credit. In the past five years, the state has been unable to maintain a balanced budget and has had to issue deficit notes in each of the past four years. The budget for the fiscal year which began April 1, 1992 was adopted nearly on time, relies somewhat less on non-recurring actions, and provides for some expenditure reductions, mainly due to a planned reduction in the size of the state workforce, However, although growth in major aid programs to local governments is modest, major structural reform of state programs which would provide enduring budget relief has not been enacted. The state budget is still narrowly balanced and the state could face additional fiscal pressure if the economy performs worse than anticipated or cost-reduction programs fail to generate anticipated savings." Net tax-supported debt, including current offering: $24,291,700,000 -0- 9/18/92 /CONTACT: George W. Lung, vice president/managing director - state ratings, 212-553-0342, or Catherine Fleischmann, assistant vice president-state ratings, 212-553-4169, both of Moody's Public Finance Department/ CO: ST: New York IN: SU: RTG
KD-AH -- NY084 -- 1338 09/18/92 17:58 EDT
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|Date:||Sep 18, 1992|
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