MOODY'S ASSIGNS Aa2 RATINGS TO STATE OF OKLAHOMA'S $111.3 MILLION GENERAL OBLIGATION REFUNDING BONDS SERIES 2010, ISSUED THROUGH THE OKLAHOMA BUILDING BONDS COMMISSION

Posted on: June 25, 2010, 4:46 pm

NEW YORK, Jun 25, 2010 -- Moody's Investors Service has assigned Aa2 ratings to the State of Oklahoma's $107.5 million Oklahoma Building Refunding Bonds of 2010, Series A and $3.9 million Oklahoma Building Refunding Bonds of 2010, Taxable Series B, issued through the Oklahoma Building Bonds Commission. Proceeds of the bonds will advance refund $103 million of outstanding Series 2003A bonds, to provide budgetary relief in fiscal year 2011, without extension of the overall maturity structure. At this time, Moody's has also affirmed the Aa2 rating on the state of Oklahoma's general obligation (G.O.) bonds, the Aa3 ratings on the various outstanding Oklahoma Capitol Improvement Authority Lease Revenue Bonds, the A1 ratings on the Master Equipment Lease Program and Master Real Property Lease Program bonds issued by the Oklahoma Development Finance Authority, and the A1 rating on Oklahoma Development Finance Authority Series 2002 Lease Revenue Bonds (Oklahoma Council on Law Enforcement Education and Training Project). The state's rating outlook is stable. Oklahoma's Aa2 G.O. rating is based on conservative fiscal practices, low debt ratios, and a trend of healthy fund balances, offset by a sizeable unfunded pension liability and a 1992 constitutional amendment that prohibits tax increases without approval in a popular vote or by a three-quarters majority in the legislature. The rating also reflects the volatility inherent in the natural gas and oil sectors, while recognizing the importance of the public sector military and defense contribution...

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