The 'AAA' rating on Minnesota's tax-exempt and taxable GO bonds reflects the following credit factors: A deep and diverse economy, supported by several regional economic hubs and anchored by the Minneapolis-St. Paul MSA, the center of the upper-Midwest economy; Continued strong management that remains committed to structural balance and maintenance of reserves; and Moderate debt levels with rapid amortization and internal controls, which keep debt levels manageable. A rebounding economy and accurate-to-positive revenue forecasts have allowed Minnesota to move back toward fiscal stability. The biennium ended in June 2005 with key reserves restored on a budgetary basis, improved liquidity levels, and a much-improved GAAP balance in the general fund. Although the unreserved general fund balance remains negative, at negative $68
