Utah's Nearly $1.25 Billion GO Bonds Assigned 'AAA' Rating; Outlook Is Stable

Bangkok--9 Sep--Standard & Poor's Standard & Poor's Ratings Services assigned its 'AAA' long-term rating to the State of Utah's nearly $1.25 billion series 2010A, B, and C general obligation (GO) bonds. In addition, Standard & Poor's affirmed its 'AAA' long-term rating on Utah's outstanding GO bonds and its 'AA+' long-term and underlying rating (SPUR) on the state's outstanding lease revenue bonds. The outlook is stable. "The rating reflects our view of Utah's young, well-educated work force and diverse economy, with an unemployment rate that, although rising, remains lower than the national average," said Standard & Poor's credit analyst Misty Newland. Further supporting the rating is our view of the state's continued good financial management, including proactive budget adjustments to maintain good financial reserves, and low debt burden with short maturity schedules." We understand that the bond proceeds will fund a portion of the state's transportation capital program, building projects, and refund series 2004B and 2009A. The state informed us that during the past several downturns, the state's economic cycle has shown that it lags the nation entering the downturn and leads the nation for recovery. Unemployment rates remained at just more than 7% for February through July 2010. RELATED CRITERIA AND RESEARCH USPF Criteria: GO Debt, Oct. 12, 2006 USPF Criteria: Key General Obligation Ratio Credit Ranges — Analysis Vs. Reality, April 2, 2008 USPF Criteria: Appropriation-Backed Obligations, June 13, 2007 Complete ratings information is available to RatingsDirect subscribers on the Global Credit Portal at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column. Media Contact: Ana Sandoval, New York (1) 212-438-5095, [email protected] Analyst Contacts: Misty Newland, San Francisco (1) 415-371-5073 David G Hitchcock, New York (1) 212-438-2022