VERMONT $49.3 MILLION GENERAL OBLIGATION BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
VERMONT $49.3 MILLION GENERAL OBLIGATION BONDS RATED 'AA' BY FITCH
-- FITCH FINANCIAL WIRE --
NEW YORK, Feb. 6 /PRNewswire/ -- The State of Vermont's $49.3 million general obligation bonds, 1992 Series A, to be offered for public bids on Feb. 11, are rated 'AA' by Fitch. The credit trend is stable. The bonds, which include $34.3 million for general purposes and $14.95 million for transportation, will mature on Feb. 1, 1993-2012, and become callable on Feb. 1, 2002, at 102 percent.
Vermont's conservative approach to debt and financial operations provides the foundation for its high credit quality. Debt ratios remain moderate, at $816 per capita and 4.6 percent of personal income, even including the $65 million notes which the state has issued to fund its deficit.
In 1991, the state adopted a two-year plan to eliminate the cumulative deficit. Taxes were raised broadly, with a 1993 sunset, to enable a return to balance over the period. Like many other states, Vermont has now had to lower its revenue estimates for this year and next, as economic recovery has not yet materialized. The governor, in his proposed budget, has set forth a plan which conforms with the outline of the adopted deficit reduction plan. Key elements include spending cuts in the general fund and in the transportation programs funded by state raised taxes. These actions, together with an anticipated increase in federal funding from the new federal transportation act, are projected to allow the combined deficit in the two funds to decline to $46 million by June 30, 1992, and to produce a balance of $7 million by June 30, 1993.
/CONTACT: Claire G. Cohen of Fitch, 212-908-0552/ CO: ST: Vermont IN: SU: RTG SM -- NY089 -- 7849 02/06/92 15:39 EST