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For Immediate Release

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August 14, 2012

Texas Short Term Notes Receive Highest Ratings

(AUSTIN) — Wall Street bond raters have given their highest ratings to this year’s Texas Tax and Revenue Anticipation Notes (TRANs). These annual one-year notes are sold to help fund school payments and manage cash flow between the start of a fiscal year and the arrival of tax revenue later in the year.

Texas’ 2012 TRANs are rated F1+ by Fitch Inc, MIG 1 by Moody’s Investors Service and SP-1+ by Standard & Poor’s. This year’s $9.8 billion TRAN sale will take place Aug. 21.

"People continue to view Texas as an attractive and desirable place to live and do business. These ratings reflect confidence in our state and its economic growth, as well as our conservative spending practices," said Texas Comptroller Susan Combs. “We have recovered all the jobs lost during the recession and continue to add jobs in Texas. However, we will continue to monitor economic conditions in the U.S. as well as Europe and Asia to track any potential effects on our state economy."

In awarding its highest rating, Fitch analysts commented, “The state has benefited from a solid economic recovery relative to other U.S. states, accompanied by resurgent sales tax and resource-related revenues.”

Moody’s Investors Service noted, “Texas forecasts revenue conservatively, a strong management feature which provides the state with flexibility during the long period between when it enacts its biennial budget and when the legislature next convenes.”

Standard & Poor’s commented, “Texas' economy has not only recovered faster than most states', but the state continues to outperform the nation in terms of employment growth and economic output.”

Texas has sold TRANs since 1987. This year’s TRAN sale will take place Tuesday, Aug. 21, from 9–10 a.m. CDT at www.trantexas.com. The notes will be repaid on Aug. 30, 2013.

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