PENNSYLVANIA $321 MILLION G.O. BONDS RATED 'AA-' BY FITCH -- FITCH FINANCIAL WIRE --
PENNSYLVANIA $321 MILLION G.O. BONDS RATED 'AA-' BY FITCH
-- FITCH FINANCIAL WIRE --
NEW YORK, Nov. 1 /PRNewswire/ -- The Commonwealth of Pennsylvania's $321.0 million general obligation bonds, Third Series A and B of 1991 are rated 'AA-' by Fitch. The 'AA-' rating assigned to $4.9 billion outstanding general obligations is affirmed. The credit trend remains stable. The new bonds will be offered for bids on Nov. 6. Series A will be serial bonds, due Nov. 15, 1992-2011, and initially callable beginning Nov. 15, 2001. Series B, $32 million, issued for advance interstate highway construction and expected to be paid from federal reimbursements, is due in its entirety on Nov. 15, 1994.
Pennsylvania continues to maintain its debt at a level which does not overburden the resources of the state. After the current sale, net tax supported debt will amount to about $6.1 billion. While this represents a substantial increase due to over half a billion dollars in recent funding by counties for prisons to be leased to the state, debt ratios remain very moderate at $516 per capita and 2.8 percent of personal income.
Revenue collections through the first quarter of the current fiscal year have exceeded the official forecast by about 5 percent, but since the overage was mainly from corporate taxes, it may represent pre-payments and not be indicative of stronger tax receipts. The 1991-92 budget is designed to provide both for current expenditures and eliminate the $453 million deficit incurred in 1990-91. Substantial tax increases were enacted to support the budget.
The unemployment rate in September was 6.8 percent, down from 7.3 percent in August. Employment detail from July indicated that employment had fallen about 1 percent from the previous year, with losses of about 5 percent in both construction and manufacturing and a 2 percent gain in services. Personal income in first quarter 1991 was up 0.4 percent from fourth quarter 1990, about the same as for the nation.
/CONTACT: Claire G. Cohen of Fitch, 212-908-0552/ CO: State of Pennsylvania ST: Pennsylvania IN: SU: RTG JT -- NY067 -- 0335 11/01/91 15:40 EST