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
Standard & Poor's also said the state gives priority to other proams
when allocating its interest earngs.