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NEW HAMPSHIRE $40 MILLION GO BONDS 'AA' BY FITCH, TREND NOW IMPROVING -- FITCH FINANCIAL WIRE --

 NEW YORK, Nov. 29 /PRNewswire/ -- New Hampshire's $40 million General Obligation Capital Improvement Bonds, for bids on Dec. 1, are rated 'AA' by Fitch. The state's $596.6 million outstanding 'AA' general obligation bonds are affirmed. The new bonds will be due Sept. 1, 1994-2013 and callable beginning Sept. 1, 2003, at 102 percent. The credit trend is changed to improving from stable.
 New Hampshire's rapid economic expansion in the 1980s was cut sharply and suddenly by recession, causing a drop of almost 10 percent in employment and pushing financial operations into deficit. The state took several measures on both the revenue and the expenditure side that, combined with large Medicaid enhancement receipts, returned the state to balance by the end of 1991-92. Operations in 1992-93 were very successful, due largely to much higher than expected business profits taxes. At the end of the year, the reserve fund held nearly $20 million, or more than 2 percent of unrestricted revenues, and surplus was available for operations in the present biennium. The budget for 1993-95 is in balance, and includes tax reform designed to moderate the volatility of the business profits tax, the state's largest revenue source.
 The economy is showing improvement as well. Employment in 1992 was slightly higher than in the previous year, although still 8 percent below the peak. Growth continued into 1993 and unemployment also has fallen. Personal income growth has improved and in 1992, the state ranked the sixth highest in the nation in terms of personal income per capita.
 Debt in New Hampshire is moderate, with tax-supported net debt equal to 2.7 percent of personal income. Even including the exposure from economic development loans guaranteed by the state, the burden remains moderate. In both debt and financial operations, New Hampshire has always taken a conservative approach. The state's fundamental strengths, together with a return to financial stability and evidence of economic recovery, lead to the change in the credit trend to improving from stable.
 -0- 11/29/93
 /CONTACT: Claire G. Cohen of Fitch, 212-908-0552/


CO: ST: New Hampshire IN: SU: RTG

GK-PS -- NY037 -- 8270 11/29/93 12:05 EST
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Date:Nov 29, 1993
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