MOODY'S UPGRADES RATING ON EAGAN, MINN. GENERAL OBLIGATION BONDS TO 'Aa' FROM 'A1'
MOODY'S UPGRADES RATING ON EAGAN, MINN. GENERAL OBLIGATION BONDS TO 'Aa' FROM 'A1' NEW YORK, Aug. 17 /PRNewswire/ -- Effective today, Moody's Investors Service upgraded the rating on the City of Eagan's, Minn. general obligation bonds to "Aa" from "A1," in conjunction with the city's planned sale on Aug. 18 of three bond issues totalling $9.38 million. The rating revision affects $59,140,000 of general obligation debt. In upgrading the rating Moody's said, "The City of Eagan, one of the more populous Minneapolis/St. Paul area suburbs, experienced an extraordinary pace of new residential and commercial/industrial construction in the 1980s, leading to formation of a sizable, diverse tax base. While the rate of development is expected to ease in the 1990s, significant potential for continued expansion exists. City residents exhibit significantly above average income levels, and housing values similarly exceed state-wide norms. The city's per capita income grew at a rate far in excess of that recorded by the state in the last decade. Area unemployment rates have increased moderately due to the recent economic recession, but are well below national levels. The city's satisfactory financial performance is characterized by its strengthening of operating reserves in recent years despite state- imposed taxing restrictions and cuts in state aid. In addition, the city has accumulated large surpluses in debt retirement and capital project funds. The city has adopted a capital program that exhibits an increased emphasis on capital planning and debt reduction efforts. Debt burden has declined significantly since the mid-1980s, reflecting the rapid retirement of city obligations, including prepayment of several bond issues utilizing surplus funds, as well as a reduction in the level of new borrowing. -0- 8/17/92 /CONTACT: Dan Aschenbach, 212-553-0880, or Dov A. Iskowitz, 212-553-7936, both of Moody's/ CO: ST: Minnesota IN: SU: RTG
SM-LD -- NY091 -- 0711 08/17/92 18:01 EDT
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|Date:||Aug 17, 1992|
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