NASHUA (N.H.) $13.6 MILLION GO BONDS RATED 'AA+' BY FITCH -- FITCH FINANCIAL WIRE --
NASHUA (N.H.) $13.6 MILLION GO BONDS RATED 'AA+' BY FITCH
-- FITCH FINANCIAL WIRE --
NEW YORK, July 1 /PRNewswire/ -- Nashua (N.H.)'s $13.6 million general obligation Public Improvement Bonds of 1992 are rated 'AA+' by Fitch. The bonds, due serially July 15 1993-2012, are scheduled for competitive sale on July 8. The county's $34.7 million outstanding 'AA+' GO bonds are affirmed. The credit trend is stable.
The assigned rating principally reflects the city's low debt, long trend of well managed and historically successful financial operations, and still strong tax collection record. Despite recent collection slowdown due to the recession severity, and which is reflected by a GAAP deficit, budgetary balances have more than doubled over the past two years.
At the center of the state's economic expansion, Nashua has evolved into a regional commercial and industrial center. Although the economic contraction has slowed development, commercial activity is still underway, with several large retail facilities in process as well as a new corporate headquarters. The recession has also impacted financially over the past few years, exacerbated by one-time problems in fiscal 1990. Conservative budgeting, timely cuts and careful monitoring have resuscitated budgetary balances. Although a GAAP deficit fund balance is recorded and rising, this reflects accrual of uncollected taxes pursuant to the GASB 60 day rule. In fact, the budgetary balance has been steadily rising since fiscal 1990. Current tax collections nonetheless remain strong with nearly 87 percent of the first instalment of the 1992-93 levy already collected. The debt position presents a light and easily manageable burden, with pay-as-you-go capital spending affording further flexibility. The completion of a revaluation expected this fall will provide a more realistic base for future operations.
/CONTACT: Ruth Corson Maynard, 212-908-0596, or Colleen Woodell, 212-908-0507, both of Fitch/ CO: ST: New Hampshire IN: SU: RTG
KD -- NY090 -- 5796 07/01/92 14:23 EDT