Fitch Rts Trumbull, CT's $29MM GOs 'AA'; $7.5MM BANs 'F1+'.

Business Editors

NEW YORK--(BUSINESS WIRE)--Aug. 26, 2003

Fitch Ratings assigns a 'AA' rating to Trumbull, CT's $29 million general obligation (GO) bonds, issue of 2003. The Rating Outlook is Stable. Concurrently with the bonds, Fitch assigns an 'F1+' rating to $5.7 million of tax exempt GO bond anticipation notes (BANs) lot A and $1.8 million taxable GO BANs lot B. The bonds and notes are scheduled for competitive bid on Sept. 4. Additionally Fitch affirms the 'AA' rating on Trumbull's $68.5 million outstanding GO bonds and revises the Rating Outlook on all outstanding GO bonds to Stable from Positive.

The 'AA' rating for this affluent suburban community is based on Trumbull's (the town) steady economic expansion and improved financial profile, modest debt burden with manageable future capital needs and rapid amortization rates. The Rating Outlook is revised to Stable from Positive reflecting the increase in the town's unfunded pension liability primarily due to unfavorable market conditions and the probability that the current funding plan, including annual increases, will likely not produce significant increased funding levels over the near term.

The town's improving financial position continues to be a credit strength and reserve levels are expected to be above the policy goal in fiscal 2003. Over the longer term, substantial increases in pension funding levels and maintenance of targeted reserve levels coupled with continued stability in the already strong economic base would support a higher rating level. The 'F1+' rating on the BANs reflects the high probability that the town will maintain market access to permanently finance the notes at a later date.

Trumbull is a wealthy, chiefly residential, Fairfield County community located north of Bridgeport and equidistant from Hartford and New York City. While many residents commute to New York or to the numerous corporate headquarters facilities in southwestern Connecticut, Trumbull has its own ample employment base made up primarily of health and business services and retail trade. The Trumbull Shopping Park, a regional mall, employs 3,000 and Oxford Health Plans, the town's largest single employer, provides 1,400 jobs. Employment at NASDAQ, Inc.'s computer operations center nearly tripled over the past decade and investments in new equipment are adding substantially to the ...