DALLAS - Oklahoma Treasurer Scott Meacham said Friday he is frustrated and angry after remarketers rejected the state's offer to buy $125.7 million of its own bonds that reset at 7% and 8% when the bond insurer's rating dropped below triple-A.

The auction-rate bonds issued by the Oklahoma Capitol Improvement Authority were paying 2.25% in mid-February, Meacham said, but rose steadily to higher rates when the insurer of the bonds, CIFG Assurance NA, was downgraded to A1 by Moody's Investors Service, AA-minus by Fitch Ratings, and A-plus by Standard & Poor's.

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