STATE

NEW YORK’S CREDIT RATING MAY BE BOOSTED BY MOODY’S

New York, the state with the second-lowest debt rating after California, may have its credit rating increased by Moody’s Investors Service as its economy improves and tax revenue rises. New York’s A2 rating, the sixth highest of 10 investment grades, was placed on Moody’s watch list for an increase, the credit ratings company said in a statement. The state has about $3.8 billion of debt backed by its general obligation pledge and $43 billion of bonds backed by appropriation, Moody’s said. New York is more likely than not to have its rating raised within the next two to three months, said Moody’s senior vice president for state ratings, Tim Blake. “We think the worst is over although there are still some looming challenges out there,” Mr. Blake said in an interview from his office in New York City. “Employment growth, tax revenue and passage of a state budget” were among the reasons why Moody’s is considering a ratings increase for the third-biggest American state, Mr. Blake said. New York’s economy has been hurt in recent years by the September 11, 2001, terrorist attacks, poor performance of the financial markets and a national recession, he said.

– Bloomberg News

NATIONAL

INITIAL JOBLESS CLAIMS PLUNGED 44,000 TO 319,000

American initial jobless claims fell last week by the most since December 2001, reflecting a decline in the number of filings by Floridians in the aftermath of Hurricane Charley, a government report showed. First-time applications for unemployment benefits plunged by 44,000 to 319,000 in the week ended September 4, the Labor Department said in Washington. The four-week moving average, a less volatile measure, dropped to 339,250 from 343,000. Claims have averaged about 344,000 a week this year, down from 401,000 for all of 2003 as companies hold on to more workers. Other reports suggest hiring may accelerate in coming months, helping bolster consumer spending and economic growth after a mid- year lull. The Labor Department said on Friday that America added 144,000 jobs in August, the first acceleration in five months. A Labor Department official said fewer claims were filed because hurricane-related applications subsided. The number of people continuing to collect state jobless benefits rose to 2.898 million in the week that ended August 28 from 2.878 million the prior week. The four week moving average of continuing claims rose to 2.889 million from 2.886 million.

– Bloomberg News

POLO RALPH LAUREN BACKS YEAR EPS VIEW

Polo Ralph Lauren Corp. is still comfortable with its earlier outlook that it will earn $2.35 to $2.45 a share in the current fiscal year, President and Chief Operating Officer Roger Farah said. With its upscale preppy-inspired fashions continuing to sell briskly at department stores and its stand-alone stores, Ralph Lauren backed its previous forecast for sales and margin.

While sales at some department stores have “taken a bit of a step back in July and August,” that was largely because a robust spring left less clearance merchandise in stores, Mr. Farah said. In some department stores there was as much as 40% to 50% less clearance merchandise than there was a year ago, Farah told investors at a retailing conference in New York hosted by Goldman Sachs.

High oil prices and headlines about political unrest in the Middle East also appear to have taken their toll on moderate-end consumers of late, Mr. Farah said.

Nevertheless, he said he is optimistic that those concerns are short term, and he is “hopeful” that sales will improve this fall.

– Dow Jones Newswires

U.S. HEALTH-INSURANCE PREMIUMS RISE 11%, STUDY SAYS

Health-insurance premiums paid by American employers rose 11.2% this year, five times as fast as wages, according to a study that may reinforce voters’ worries over rising medical costs. Health insurance now costs an average of $9,950 for families and $3,695 for individuals, researchers at the Henry J. Kaiser Family Foundation and the Health Research and Educational Trust said.

This year’s increase was the fourth in a row to exceed 10% and followed a 13.9% jump in 2003. Last year’s gain was the biggest since a 14% increase in 1990.

The survey found that 63% of small businesses offer medical insurance, down from 68% three years ago. Kaiser said big companies, which typically absorb more of the expense of health benefits than small firms, also are running out of ways to attack costs. Of all businesses, 61% offered coverage this year, down from a peak of 65% in 2001. Workers pay an average of $558 annually for single coverage and $2,661 for family coverage, Kaiser said. Wages are up about 2.2% this year, Kaiser said, and inflation is at about 2.3%.

– Bloomberg News