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For Immediate Release June 3_ 2009 _410pm_ Contact Scott

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For Immediate Release June 3_ 2009 _410pm_ Contact Scott Powered By Docstoc
					For Immediate Release: June 3, 2009 (4:10pm)
Contact: Scott Malyerck (O) 803.734.2665 (C) 803.446.2881


STATE TREASURER RELEASES CREDIT RATING DATA WHILE ISSUING WARNING
South Carolina's credit rating remains one of the highest in the nation due to low debt


(Columbia, SC)....South Carolina's credit rating remains one of the highest in the country
according to the country's three major credit rating agencies, Standard & Poors, Moody's,
and Fitch.

The State of South Carolina will sell General Obligation Bonds today for Winthrop University,
the University of South Carolina, and Research University Infrastructure Bonds. In advance of the
sale, the State Treasurer's Office asked for a credit rating update from the three rating agencies in order
to rate the bonds.

All three agencies reaffirmed their ratings for South Carolina.
(A "AAA" rating is the highest possible while " AA+ " is one step below the highest.)

Standard & Poors (AA+) stated that among the reasons that South Carolina's credit rating remains high
is due to "low debt levels" and "proactive management, which has contributed to improved
financial performance in recent years." Standard & Poors also believes that South Carolina "...has
been actively making the necessary budget adjustments to maintain balance" and views the State's
"...long term financial planning and forecasting strategies and low debt levels positively."

Moody's (AAA) stated that its continued highest AAA rating is "...based primarily on the state's
conservative
fiscal management." They also stated that the State has "...historically taken quick action to address
projected budget gaps...and develop a formal process for long-term financial planning."

Fitch (AAA) stated its continued AAA rating is because of the State's "...proven ability
and willingness to support fiscal balance." Fitch also cites South Carolina's moderate debt
level as another reason for the AAA rating.

"The good news is that only nine states in the country have credit ratings as high as South Carolina's
and this shows that we have behaved in a financially responsible way," said State Treasurer
Converse Chellis. "The bad news is that we have major problems to address in our State."

All three rating agencies cited South Carolina's unemployment rate, low income levels and falling
revenues as potential issues that if not addressed, could weaken and even lower South Carolina's
credit rating.

Treasurer Chellis warned, "Clearly debt is not our state's major problem; however, extremely high
unemployment,
low personal wealth and income levels of our citizens, and weakening revenues are our problem.
We need to seriously begin addressing these issues in a comprehensive way as soon as possible or
we will be in danger of losing our top credit rating. If that were to occur, both our State and taxpayers
would be negatively impacted."

NOTE:

The sale for the following State Obligation Bonds will occur today.
$13,850,000 State General Obligation Institution Bonds
(Issued on behalf of Winthrop University), Series 2009A

$8,550,000 State General Obligation Institution Bonds
(Issued on behalf of the University of South Carolina), Series 2009B

$52,285,000 State General Obligation Research University Infrastructure Bonds, Series 2009A
$18,300,000 State General Obligation Research University Infrastructure Bonds, Series 2009B




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Scott M. Malyerck
Deputy State Treasurer
State of South Carolina
(O) (803) 734-2665
(C) (803) 446-2881
(F) (803) 734-2690
scott.malyerck@sto.sc.gov

				
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