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Moody's assigns A3 rating to PA's TAP Guaranteed Savings Plan

(November 15, 2005) - Moody's Investors Service has assigned its A3 investment grade rating to Pennsylvania's TAP 529 Guaranteed Savings Plan. State Treasurer Bob Casey hired Moody's in May 2005 to provide its rating, the first ever for any state's prepaid tuition or guaranteed savings plan.

The TAP Guaranteed Savings Plan permits Pennsylvania residents to purchase credits pegged to the value of one of several available tuition indices. The program's ability to deliver its promised benefits depends on future tuition increases, the net investment performance of the TAP program fund, and the pricing of the credits at the time of purchase. Unlike several other states, Pennsylvania does not provide its full faith and credit backing of the program obligations. In developing its rating, Moody's considered the high likelihood of financial support coming from the Commonwealth if a financial crisis were to develop.

For more information, including a new benefits calculator for program participants, a new website at www.tapfacts.com has been made available.

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