Fitch Investors Service yesterday <
assigned a AAA rating to a $10.3 million Summit, N.J., general obligation deal scheduled for a June 3 competitive sale.
"Exceptionally strong credit <
quality derives from Summit's low debt burden on a large tax base, excellent finances, and high wealth levels," Fitch says in a statement announcing the rating.
Summit, which lies 20 miles west <
of New York City, is largely residential, but has several large commercial and service industries.
The U.S. research and corporate <
headquarters of Ciba-Geigy Corp., a chemicals and pharmaceutical company and a subsidiary of Ciba-Geity Ltd. of Switzerland, is located in the city and is undergoing a large capital facilities expansion.
Summit's per-capita income levels <
are more than two times the state and national averages, Fitch says, and unemployment rates are low.
The city has authority to issue <
another $2.9 million in bonds and is likely to use the proceeds to construct a new library. The overall debt burden of 1.2% on the large tax base is low, Fitch says, although per-capital debt levels are moderate.
A 1991 fund balance of $6.3 million <
represents 17% of municipal revenues and school district taxes, Fitch says.
Summit also has a Aaa rating <
from Moody's Investors Service, and Standard & Poor's Corp. rates the city AA-plus.