Notes to Financial Statements
The portions of such Annual Report that are not specifically listed above are not incorporated by reference into
this SAI and are not part of the Registration Statement.
DESCRIPTION OF SECURITIES RATINGS
MOODY'S AND STANDARD & POOR'S
MUNICIPAL AND CORPORATE BONDS AND MUNICIPAL LOANS
The two highest ratings of Standard & Poor's Ratings Services ("S&P") for municipal and corporate bonds are
AAA and AA. Bonds rated AAA have the highest rating assigned by S&P to a debt obligation. Capacity to pay
interest and repay principal is extremely strong. Bonds rated AA have a very strong capacity to pay interest and
repay principal and differ from the highest rated issues only in a small degree. The AA rating may be modified by
the addition of a plus (+) or minus (-) sign to show relative standing within that rating category.
The two highest ratings of Moody's Investors Service, Inc. ("Moody's") for municipal and corporate bonds are
Aaa and Aa. Bonds rated Aaa are judged by Moody's to be of the best quality. Bonds rated Aa are judged to
be of high quality by all standards. Together with the Aaa group, they comprise what are generally known as
high-grade bonds. Moody's states that Aa bonds are rated lower than the best bonds because margins of
protection or other elements make long-term risks appear somewhat larger than Aaa securities. The generic
rating Aa may be modified by the addition of the numerals 1, 2 or 3. The modifier 1 indicates that the security
ranks in the higher end of the Aa rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3
indicates that the issue ranks in the lower end of such rating category.
SHORT TERM MUNICIPAL LOANS
S&P's highest rating for short-term municipal loans is SP-1. S&P states that short-term municipal securities
bearing the SP-1 designation have a strong capacity to pay principal and interest. Those issues rated SP-1 which
are determined to possess a very strong capacity to pay debt ser