Standard & Poor's Corp. has

lowered ratings on bonds issued b

the Arkansas Development Finance

Authority to A-minus from A-plus

and revised its outlook to stable from negative.

Affected by the rating change a:

* $53.425 million of economic

development revenue bonds through the authority's guarantee program

Series affected are 1987A-K,

1988A-L, 1989-A-J, 1990A-D, 1991A,

1991A, 1992A-B, and 1994A-F.

* $9.784 million of economic

development revenue bonds,

comprising the guarantee program'taxable

series 1987A and C bonds; 1990A

notes; 1992A notes; 1992A, B, and

bonds; and 1993A bonds.

* $2 million of industrial

development revenue bonds for Hela,

Ark., through the authority's

guaranty program in 1992.

Standard & Poor's attributed th

rating downgrades, which were mad

about two weeks ago, to factors

including a substantial drop in

Arkansas Treasury earnings from $

million in 1984 to $14.9 million 1993.

The drop resulted partly becaus

of low interest rates during the

recession and investment criteria requiring the state treasury balaes to be

invested in maturities of less th

one year.

Standard & Poor's also said the state gives priority to other proams

when allocating its interest earngs.

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