Standard&Poor's Ratings Services lowered its rating on Minnesota's $5.1 billion of general obligation (GO) bonds to 'AA+' from 'AAA'. The outlook is stable. At the same time, Standard&Poor's assigned its 'AA+' rating, and stable outlook, to Minnesota's GO state bonds consisting of: $445 million GO state various purpose bonds, series 2011A; $320 million GO state trunk highway bonds, series 2011B; and $4 million GO taxable state bonds, series 2011C; The downgrade reflects what we view as the state's ongoing reliance on nonrecurring measures to balance its budget, which we believe will contribute to continued structural imbalance. Payment delays to schools, a bond issue secured by tobacco settlement revenues, and use of reserves account for about two-thirds
