MOODY'S ASSIGNS Aa2 RATING, NEGATIVE OUTLOOK, TO STATE OF OHIO'S PLANNED $146 MILLION INFRASTRUCTURE IMPROVEMENT GENERAL OBLIGATION BONDS, SERIES 2010B (BUILD AMERICA BONDS) AND SERIES 2010C (TAX-EXEMPT)

Posted on: February 12, 2010, 2:47 pm

NEW YORK, Feb 12, 2010 -- Moody's Investors Service has assigned ratings of Aa2, with a negative outlook, to the State of Ohio's planned issuance of $146 million of general obligation bonds in two series as listed above. The bonds, expected to be priced on February 22 and 23, will be issued through the Ohio Public Facilities Commission (OPFC). Series 2010B will be issued as federally taxable Build America Bonds (BABs). The federal reimbursements expected on the BABs (equal to 35% of interest costs) are not pledged to bondholders. Proceeds of the BABs will be used to finance local subdivision capital improvement projects. Series 2010C is expected to be issued as tax-exempt debt to refund certain general obligation bonds issued in 2002-2004 and 2006. The state's Aa2 general obligation rating is based on a history of strong financial management that has been tested by long-running economic underperformance. Ohio's rating outlook was revised to negative from stable on August 24, because of continuing economic challenges and an increased use of non-recurring budgetary measures...

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