Minnesota to lead U.S. community bond issuance next week

Minnesota will be back in the United States
local bond market next week with an overall of $787,945 million
in basic obligation bonds following a current credit upgrade,
starting a hectic begin to the normally sleepy month of August. Minnesota’s offers consist of $301,195 countless series
2016D GO refunding bonds, $264,250 countless series 2016A GO
bonds for various functions, $215,000 in 2016B GO bonds for state
trunk highway bonds, and $7,500 million in series 2016C GO
taxable state bonds for numerous functions. The bonds are set up to strike the marketplace on Tuesday.

On Thursday, Fitch Ratings raised Minnesota’s credit score
from ‘AA+’ to ‘AAA,’ its highest rating level. “Minnesota has actually shown considerable financial resilience
through downturns and a strong commitment to strengthening its
financial position as conditions improve,” Fitch stated.

” The ‘AAA’ rating reflects Minnesota’s strong and broad-based
economy, a revenue structure well developed to capture financial
growth, a low liability problem, and strong control over revenues
and spending,” Fitch stated. In general, an approximated $11.87 billion of debt will hit the
community bond market next week, a healthy quantity for the first
week of August, which normally is one of the slower months as
market individuals take getaway.

The regular average for debt issuance this year is about $8.2.
billion. Experts on Friday said there was enough demand in the.
market to validate the issuance level. Total issuance next week will be comprised of $7.73 billion.
from the worked out calendar and $2.75 billion in competitive.
offerings, according to initial Thomson Reuters data.

( Reporting by Rory Carroll; Modifying by Jonathan Oatis).

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