MOODY'S UPGRADES STATE OF WEST VIRGINIA'S RATING TO Aa1 FROM Aa2 IN CONJUNCTION WITH $35 MILLION GENERAL OBLIGATION SERIES 2010A BONDS

Posted on: July 9, 2010, 1:54 pm

NEW YORK, Jul 9, 2010 -- Moody's Investors Service has assigned an Aa1 rating to the State of West Virginia's $35 million General Obligation State Road Refunding Bonds Series 2010A. The bonds are being issued for debt service savings. Concurrently, Moody's has upgraded the ratings on the state's outstanding general obligation bonds ($603 million) to Aa1 from Aa2 and the outstanding $783 million lease revenue bonds from to Aa2 from Aa3 . The outlook is stable. The rating upgrades reflect the state's ongoing trend of fiscal conservatism and favorable General Fund financial performance evidenced by consistent positive year-end available fund balances through economic cycles over the past decade. Improvement in the funding ratio for the state's pension systems and actions taken to reduce the outstanding other post- employment benefit (OPEB) liability are also positive steps. The rating also incorporates the historically underperforming economy, which has recently shown signs of modest growth and diversification. The stable outlook incorporates Moody's expectation that the state will continue its conservative fiscal management and tight expenditure controls that have resulted in sound financial operations despite a below average demographics and some economic vulnerability inherent in its natural resource industries...

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