For Immediate Release

Wednesday, 5 December 2001

 

WALL STREET GIVES SOUTH CAROLINA VOTE OF CONFIDENCE

Columbia, SC - South Carolina’s financial outlook remains strong despite recently declining revenues according to Moody’s, one of the three most respected credit rating agencies on Wall Street. On December 4th, Moody’s assigned its highest rating, "Aaa", to South Carolina’s upcoming General Obligation bond issues.

Moody’s statement is clear: "The ‘Aaa’ rating is based on the state’s conservative fiscal management, low debt levels, and positive, though slowing economic growth."

The assigned rating was for $11.25 million in bonds to be issued on Thursday, December 6th, 2001. Three bonds will be issued tomorrow on behalf of the Medical University of South Carolina, The Citadel, and Winthrop University.

"This ringing endorsement of our budget practices and economic outlook, even with our present budget difficulties, should be comforting to everyone," State Treasurer Grady Patterson said. "I am especially proud that many of the things I’d advocated years ago – like our reserve funds and our annual debt limit – were cited as reasons for South Carolina’s fiscal strength."

Mr. Patterson concluded: "It is imperative we maintain our ‘Aaa’ rating to address huge education and transportation needs in the future without raising taxes. It will be a challenge. The General Assembly must responsibly live within our declining revenues, and address the problem of annualizations. If that occurs, the ‘Aaa’ rating will be secure and continue to benefit all South Carolinians."

 

For more information contact:
David A. Adams, 803/734-0380