...Analytical Conclusion: Oregon's `AA+' Issuer Default Rating (IDR) and Stable Rating Outlook reflect the state's strong control over revenues and spending, low liabilities and record of prompt actions to maintain financial flexibility in challenging revenue periods. Strong financial management is critical to the rating given a revenue structure largely dependent on the cyclical personal income tax (PIT), exposure to voter initiatives that can have negative fiscal impacts and constitutional `kicker' provisions that require the return of surplus revenues to taxpayers. There is no statewide sales tax. The state's operating performance is sustained by a diverse economy with strong growth prospects. Economic Resource Base: Oregon's economy tends to be more cyclical than the nation's due to its large high-tech sector and international trade activities that expose the state to global economic cycles. The economy has retained its large agriculture and natural resource sectors, although those sectors...
