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<br /> 080 MOODY'S 80ND RECORD March 1996
<br /> Moody's Bonu H9~!!'I;.. I
<br /> PurClO'~: .ne ournase 0: MCOOY'S Ratings IS to provlce tne Investors wrfh a ,;:atls:~':al laClOrs alone ..Ince lnav are aoprstsal of long-term n&KS., inCluding tne
<br /> Sirr.::lle j:"srem 01 graoatIon oy wnlG:'1 lne relative JnVBSlment quauues or oonas 'IL'Ognnl0f'l 01 many r.on-C1811!;tlC8l lB:::Oni.
<br /> :';OOOv, ''',no, ,.",...nl 1M oo,n.on 01 ,",000", Inv..,o", S.""e& .. ~
<br /> may Oe nOlec:. 'BI8tIY'S Inv_8S1mBnt classlhcallan 01 OOI"IOS. As su:::n. If\ay sncuiCl De used_ Ir'\ I
<br /> Chllr,;e, In Aatin;: 7he cuaiiry of most bonos IS !Xl! flleC and Steady over a junction wrtn the oescnOllcn ane SIBllSllCS aopeanng In Mooov's Mun
<br /> p.enoo Of lime. Out 1an05 10 un06f90 cnange. i=or tl'IlS reason cnangBS In rSllngs Government Manual ana MUnlClOal Credl! RelXms_ Aelerenes snould be mace 0
<br /> oc::ur so as to rsheet tnese vancH10ns In tfle frltnnSlC position oj IMOlVloUal DOnas. tnase lor Inlorm811on reQal'Olng Ine Issuer.
<br /> /., cnanoe In ratlno may :nus oc:;:ur a1 any lima In tne case 01 an frlcfVlouai ISSue, An unOertvmg rating reor8Sems Mooays avaiu8110n ot Ine debt &81'VlC8 reoay.
<br /> Suen ratlno c:"Ianae snould seNe notIce lnat Mooc::tv's oOserves some anerauon In
<br /> Ine InveslInem nsKS 01 tne oonel or lMt lne orevious raflng aiel not tully retlect men! ca08Crry oj an ISSuer Wllnout QIVlng ettec: to tne credit ennarlC8mem on I
<br /> Inat lSauerG <UJ.OL
<br /> tne euallty ot tna cone as now seen. While oecaU5a at tnelr very nature. cnang8s (Dutch Auctionl: thIS aSStgnallon aenOtes 1ha! the s&curities 10 whid'l It ~
<br /> are 10 be 8xoecteel more ireeuenllY among Donos 01 lower :'allngs lnan among CL.S:Slgneo are SUO!BCl 10 oenoolC reotter ana resale In lhe $8COnaary mark8t In a
<br /> bonas 01 hlgner rallngs; f\oeveflnel9SS. IIle user 0: bonq ratlng5 snoulCl )(000 Close ~olJte:'\ auctIon", lwrllcn may be OUOlle or onv81el, and mal as a eonseeuer'lCe
<br /> and constant cn&Ck on all ra1lngs.oem hlt;Jn and lOW rautlI;:s.lnerecy te be aOle to Ine ability a! I1Oloers at suc:-. secumles 10 selt su::tl sec:JmJeS a1 wen penool,c
<br /> nOle cromollV any signs 01 .:nange In Investrnent S-..B.IUS WTllcn may OC::::.Jr. auctiOns ana Ine onc&s. if any. al wmen sucn sacurmes ...may be so sold WIll I
<br /> UmlUllionl to Ua.. 01 Ratinat: Bonos C8tTVlnC IIle &Sma ratlno are not Claimed
<br /> to De 01 aDSOlutelv equal QUality. In a croao'se-nse lhey are all;e tr'l oosltlon. Out oeoenc SOlely on condruol"!S or SUOPIY and oemano pnwecung In tne seconaary
<br /> manr::el al Ine tIme o~ sue:'! aUC:IOn5. The croon rating 8.S$lgnea by Mooays 10
<br /> since there ara onlY nine raring Classes used In graomg tnou:sanos 01 bonC1S. lrre $&Cuml6S o.eanng 1M oeslgnallon (Duten AUC"..ron) 8XDt'8S.$8S a JUClQmenIOy
<br /> svmOOIS cannot rerlae: me line snao.rncs 01 nsk:s wtllcn actually extSL Tneretore. Mooays sOleI)' as (0 Ins al:lTlrty ana WlHmgness oj tI"le t!l.Suer of suCh aecunues 10
<br /> 11' snould p.e 8VlCenl 10 Ine user 01 ra'llnQS lna! !Wo oonos loenll::.alty ralBa are make r&Qulany s.:necweo oaymBnlS of pnnCloal, pl'9mlum. !f any, and. rmeresl
<br /> uniiil:ery to oe oreeselY lne same In mvestment OlJalrry. unoer lne Inoenlure or olMr constnuw-'e 1tlstruments oursuan: to whlCll suer. I
<br /> As raltn9s are aeSlgneo excluslvery lor 1M purpose 01 graorng oanes ac::ordmQ S8CUmleS were Issued ana m no way exoresses any juagmem WT\8.lSOever, as 10
<br /> 10 lnetr Inveslment ouahlle.s. mev snould not oe u&eo alone as a oasIS lor InveSI. tne aoilrry of any notoer of sucn &ae:Jml6S to sell any or. SUCt'l s.ecurihes lfl tne
<br /> men1 ooeratlons. For examOle, lney nave no value In loreca.sllng Ine elreC':lon of seconcary marxel at sucn oenOOlC auOJons or tne eneas, ~ any. al wnid'l any of
<br /> IlJture trel'\OS of manr::a1 pnca. Mel'Xet once movemenm In conas are Irdluen::ad sucn &8Cumles may De sole.
<br /> not only Oy Ine ouatny 0: Ind.lvioual ISSUSS out also oy enen(]6S In money re1es Atl..n~ of Rilling: When! no rallf\; MS been aSSIgned or wnere a rating has I
<br /> ana oeneral economIC lrenos. as weil as oy Ine IElnO"ln at malum)'. etc. Dunng ItS Deen susoenoao or wrtnor:awn, It may o.e tor re.as.ons unrelated to the Qua.uty 01
<br /> lite e-van Ine oes.: cualrty cona may nave wloe onCe movements. wnile ItS nlgn trle ISSue.
<br /> InveStn"Hltl'll Statu, remams uncnangsa. Snould no l'lI.\lng De 4SSlgned. 1ne reason may be one at me tollowlng:
<br /> The maner 01 marxet once nas no Cleanng wnatsoever on trMI oetermmallon of ,. An aDPhC8tlon tor rating was not f8C8IV80 or acceot90.
<br /> 'ratlngs wnicn are not Tel oe COnttD.Jed as rBCQmrnenoaflons witro resoec:t ,10 2, The l$SW or lSSlJ8r DeIOllQS Ie a group oj 1ollCUr'ttie6 mal Ira nOl rat8d as a I
<br /> ~anractl\/'enes&." The 1!I11tBetlV9ne8S oj a gcven DOnQ lTIllIy oeoend on Its 'V1810. ItS maner 0: POllC\'.
<br /> m.&uJntv cale or olner taetors lor wnle.., lna 1",,&Slar may sean:n. as well 8.B on its 3-. There 16 a laCK'of ess.ential oats Dertainlng to the Issue orl:&8uer.
<br /> InVBSlment Qualiry, 1ns onlY cnarac:enslJC 10 wtlcn tne mlJng taters. .:. The l88Ue was onV8IB'Y olacec. It'l wnx:n cue tne raong IS nOt puoli5hed m
<br /> Since n!ttnos InVONe luoomenlS SCOut Ine 1I.11urB, on me one MM.. and Since MOOOV's ouotatlons.
<br /> 1nay are uS.ecl oy Investors as a means 01 orot8Qon, 0(1 Ins other, tt'le attor: IS SusD8t1Slon' or wtthdnaW8t may oe:'.Jr H new ana material d~ncss ariM, the
<br /> maoe WnBn as&lgnmg IlUlnas 10 looK at "wors:" OOtenlla.lilias In tns "ViSible ,. etT8C'.s of 'tVtl1Cr1 Ol'9Cluoe aabsl&c:ory an&rVSQ;;; It there IS. no IooQer ava.ilabie I
<br /> iuwre. r8mer tnan iOlelY al lne P8El fecOro ana 1ne Slams ot tns orass!'\:. Tr.er.. tlWI80naDle up-to-oal& oata 10 oermn 8 Juogmenl to tl6 tOI'TT'litC; If a OOnd IS callBCl
<br /> !Ota, lnveslors uSing tne rallng snOUlO no:. exoec: 10 llnd :n lnem eo retl8Cllon at lor reaemotlon: or tor olner rea.sons..
<br /> Key to Moody's Municipal Ratings
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<br /> 8on<is wnicn are rated .6.&a are iuoged to lJe at the 086:1 cU8litv. They carry tne Bonos ""~n .r. ,,,oo B O''''''''N '""" cr.""",."""", of "'" -.- .
<br /> smalleSt oegree of Inll'8SUnenl n:sk aM are generallv relerred 10 &Ii "gm ao9Q.- I ment. Assurance 01 1fI18f'8S1 ano o'nnooal 08:vments or O! maintenance 01 .
<br /> IntSl'lIS1 Dayrnerm;; al'9 protBCl8C Oy a I8rge or oy an e:r.ceotlOMlly ~e maf9tn terms ot tne ccnuac: over any lOng penoo 01 time may be arnall.
<br /> ancl pnnc:oaJ IS ~ta, While tria vanous proteetl'V9 elements are liK.ely to Cu
<br /> c:1anpe, sucn c..,anQ9S as ean De VISualIZed are mOSl unliutly 10 ImDalr lne lunaa. Sones wnich are raled CUi are of DOOr standzn;. SUd'l1ss1J6S may lJe in oelault or I
<br /> menLaJly SlronQ position 01 suen ISSU85.,
<br /> ... tnere may o-e pr6:&8nl elements 01 canper Wi'tn r$8.DeC: to pnnc:pal or ItUe/'86l
<br /> Sanes whi=:1 Sill ral8d Aa are luaged 10 be or hl9n eualiry oy all stanoarcs. C.
<br /> Topetner wltn tne .A.a.a grouo tney comonse wn81 are 9E1nBrall~ w.:nown as ntgn .3onas wnicn are rated C.a reOf'8sant oOilgatlOl'\S wheh are scect.JLatlve in .. hl';m
<br /> greoe oonos. Tney are talae lower Inan tne DeSl oonas oecaU58 margins oj oegr96. Sucn ISSues are often It) Qel8Un or have OU'l8r manutQ anortcomlngc.
<br /> prol8C:lon mey not ne as 18rpe as In Aaa secunU8$ or llUCluatlOn at :Jrclect~ C I
<br /> e>ements mey De ot grealer amolrtuOe or lrlere may 00& otner 81ementS Ol'8S8nl Bonos wnic:n are nued C are tM lowes1 ratea aa..as or bonOs. and tasues t,O raled
<br /> wtlle.., maKe 1M tong-term n8KS a.coe.ar somewnat 18rger man In ....a secuntles. can be mgaro&O as n8V1ng ~r.mery pcxJr ~ 01 ....r &naInmg atT't. real
<br /> A If1'll'8IItmenl Klandlng.
<br /> 80nas wnictl are rattcl A POS&8S5 many ta'lOrabIe inll'88trnent atll'lt1utes ana are C<ln. (_I
<br /> 10 De c:onalosred as ucoer mealum graoe oblIgatIOns.. Factors 9Mn9 S8CUnty to I
<br /> ;.nnC\pal ano Interest at'll eortSlOOt80 aoeoU8le. oU: &..mIIrns may De DnI&8nt Bonos tor wnictt tne MCUmy oeoencs uoon lne comDieuon of tome ad or me
<br /> wrucn SUgge.s1 . auscaotibitrty 10 lrno&rmenl :aomeume In me IUlur8. tulflllmenl 01 some eonci1lOn are raleo conciit!onaJly. T'heN Ire DOMa II8O.ftd Oy
<br /> au fa) earnings Of pro.ec:u unoer constructJon. (bl Nl'T'IlnQS 01. ptclf8CtS ~
<br /> 3ond8 wnic., are rated e... ani c:onsioer80 as medium graoe oblrgallons. i.e.. tlley In ooerallon e~nence. (c) rentals wnlCh DeQln wnen laciliiies are comDl6Iill(j. or
<br /> (d) ,DaymentS 10 Wf\cn aome otner limrtIng e:ondrtIOI'l .nacnes. Parantnetleal rat.
<br /> ara neilner nlgnty protltCleo nor ooony MCUrad... InlBt8St payments ana pnnaoaJ Il"Ig 0800188 O~ Ct8dlt atatulll uoon C04'nDletlOrl 01 c::onstru::bon or "'rTUM- I
<br /> S80JmY aooear .oeouale lor ~ne Otas.enl but C8r".am Orot8Cl1V9 8IBments may OEI bOn ot DUI$ 01 COMmon.
<br /> 18ClClng" or may De cn8raC'lenstJcaliv unl'9iiaDle OYer any great Hlno;nn 01 lIme. Suen IPl-
<br /> cones 18Cll: outatanOlf\g Inll'8Slmem enanaC!l1n8UCS ana It'l lad nave SD8ClJl8tlVe
<br /> ::'I8taC'lenstJcs as well. When aoDi'ed to 10l'W'ard oeirverv OOnes. rndlC818S that the rmin9 Is pt'OVSonal
<br /> Sa Qet\Cln9 O&lIV9ry of tne bonoS. The n!llng may be f8V1S8C1 pnor 10 oewary H
<br /> ~as whicl'l ara nated 8a are JUOged to nave Soea.I18lrve 8l9ments: melr 1utuIlI c::l8.fl98i OCCIJr In me legal oocumemli or.1:tle unoenymg ct9dtt Qualtry 01 me I
<br /> cannol oe CCn81osreo as ~II &SSUl'9o. Otlen me orotBCtlOn 01 Interest ana onnci- POnos.
<br /> :>aJ paymentS may De wuy mooerate ana tnereov not wall sategU8roec1 ounng Not.: ThOlNl bonos m the A.a. A. 8&a. 8a and B QTOUOS wnicn Moody'S beIieY8S
<br /> :wJtrI gooO anCl bad lJtT*S OYer tl1e h.nure. Uncertamty 01 pccuon ena:~nz.es tIONMS tl1e Slronoeel \m'IIlJIITJ8nl attnoutea are OMlQl'\8llKl f7y the symDCIl& ...."
<br /> bOnOS 1ft ttu& ct.ur.. Al. Bu,. s." aild 8t.
<br /> MOODY'S MUNICIPAl.BOND YIELD AVERAGES I
<br /> i "'...r. -~~~- -~Dy~- Awe. -~Dy~-
<br /> i AWl.
<br /> i MUnlc. .... ... . .... Munlc- .... ... A "'" Munic. .... ... A -
<br /> '8U 1".5 ,..e
<br /> - .... S.~3 5." .s,Hl 5.38 S.ClO .JOn. .... 1.$1 15..&1 6.'3 8.'8 'e.1I5 - .... 5..S8 .... 5.5:2 15.e.S ,.... I
<br /> ~. .... 5.26 5.06 5.16 5.27 5.5:2 i'oo. .... 8.25 6.06 1.01l tI..24 e.81 .... ._-. 5..&8 S.25 5.4:2 5.55 ,...
<br /> ;..tar. .... 5,52 ~.211 5.'7 5.56 30.74 ...,. n.. 6.12 5.91 5.9' 6.15 6.50 ...,. __n - - - - -
<br /> ""DC n.. 5.156 5... .!i.eo 5.71 5.81 ACr. nn 5.88 5.74 5,aO S.U 6.01 "Clf. --.- - - - - -
<br /> .....,. n.. S.B3 5.62 5.79 5.110 6.02 ..., ..-- 5.&3 5.88 5,13 5.91 S.U ...,. ..h - - - - -
<br /> - ..n 5,IM 5.76 5.96 6.07 6.15 'un. ..-- S.S" 5.12' 5,151 5.73 5.!i ~ ..h - - - - -
<br /> ,... nn t'i.10 5.86 6.10 6.17 6.26 JU:, ..-- 5.75 5.68 S,54 5.76 5.il 'uL --.. - - - - . I
<br /> _. .--- 6.01 S.U e..06 6.13 6.23 _. .... 5.16 5.83 5.81 5,86 5.$15 ......~ u.. - - - -
<br /> 50" u.. 6.06 5.87 6.011 6.15 6.22 ..... .... S.7i 5:;01 5.15 5.78 5."0 ..... .... - - - -
<br /> OC. .... 6.2.6 6.05 a.30 6..33 6.37 De. .... 5.83 5.7J. 5.74 5.84 5.$15 De. .... - - - -
<br /> _. .... 6.77 6.57 6.79 6..64 6.U _. .... 5.83 5.58 5.55 5.e3 5.76 ..... .... - - - - -
<br /> Doo .... 6.7:! 6.152 6,.511 6.13 7.17 Doo .... S.50 5,4.0 5.4:!. 5..53 5.86 Do<. .--. - - - - -
<br /> Tbo: .~ nave bcaJ CIlJIUlt\IC1Cd from I una!1 a&llrohlll o( ,c:ocn.I ~ I~. UoOe:r the; rd.atlvc:ly ..\able m.ux~ axxbuoru uw. ..~ tla'fonnc:1 NUullaOrily.~, ulldet ~ I
<br /> man.c:lI =ncuUOf\L-.n.~ ~ roaoeriftc:l....uaqllll:k:ly ~ 1.lI'~ oued~GltcOUJI;l oono:u.c.on..an-uly.iOf~ul!le MOOCIY'II~lIa~DCalInI~.ItaJ'E.."_,nI
<br /> l"Illa CCCl'l~\o'ell tIOtonly IOCUI.Ilry IClQmaw.nrybulll.-ol.Ofaaonoi DI"C""lUbnJII r-.c ~ro~IDC ~1IIC~:'tlCkl.l..-oul.dbEif~of~aamc:O\I&irrylXlnl~COUOOOlIL~'
<br /> JI"'UO"'CIl:~llIoIII;MOOCI""II~na..-et:lC(lOl'Dccx)Iarcr:1""'tne._.IU.&>Cm.an..eI. Tbu.t..MOOCIV'ltZlU4lQc:-J~I~~~trornl~~oi ~man.a._aa11J:Dt
<br /> :n U1o:: ....:....._,;...uc m...u:ec. .'-1lXlo:1V'1 cc:ueve.aln..:. thll II II\(" DIIIV mn.l.:: mcaru Dl .I.IlTIoi<n~ and ~n, TT\&Br:I~.
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