Fitch Ratings on Tuesday said it would confirm the AA long-term rating and assign an F-1-plus short-term rating to $70.95 million of Series 2003C Mississippi general obligation bonds upon conversion of the auction-rate securities to a weekly rate on June 4.
Fitch also said it would confirm the AA long-term rating and assign an F-1-plus short-term rating to $50 million of Series 2007 capital improvement GOs upon conversion of those ARS to a weekly rate on June 5.
Both conversions are being supported by the addition of standby bond purchase agreements from Bank of America NA.
The Series 2003C bonds were originally insured by Financial Guaranty Insurance Co. and the Series 2007 bonds were insured by XL Capital Assurance Inc. Both insurance policies will be canceled when the bonds are reoffered, according reports on the transactions by Fitch.
The Series 2003C bonds were issued to support construction of Nissan North America Inc.’s manufacturing plant while the Series 2007 bonds were issued to fund various capital improvements.
“The AA rating and stable outlook for the state of Mississippi are based on the state’s improving reserve levels, diversifying economy, and historically conservative borrowing, and financial practices tempered by low education and wealth levels,” Fitch said.