CA State Pub Wks Brd/CA Corr Lse Revs Rtd 'A' by S&P.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 10/7/98 - Standard & Poor's today assigned its single-'A' ratings to California State Public Works public works pl.n. Construction projects, such as highways or dams, financed by public funds and constructed by a government for the benefit or use of the general public. Noun 1. Board's lease revenue refunding bonds refunding bond A bond that is issued for the purpose of retiring an outstanding bond. Issuers refund bond issues to reduce financing costs, eliminate covenants, and alter maturities. See also crossover refunding bonds, prerefunding. issued for California (see list below). In addition, Standard & Poor's affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. its ratings on the board's outstanding bonds issued for California (see list below). The ratings on California State Public Works Board reflect: -- The state's strong general creditworthiness Creditworthiness The condition in which the risk of default on a debt obligation by that entity is deemed low. Creditworthiness Eligibility of an individual or firm to borrow money. (single-'A'-plus G.O. rating), including its broad economic improvement and an improved financial position, despite on-going structural budget impediments IMPEDIMENTS, contracts. Legal objections to the making of a contract. Impediments which relate to the person are those of minority, want of reason, coverture, and the like; they are sometimes called disabilities. Vide Incapacity. 2. ; -- Legal structures that include the state's covenant to budget and allocate lease payments, combined with strong statutory protection from nonappropriation risk; and -- Strong project essentiality. The provisional Temporary; not permanent. Tentative, contingent, preliminary. A provisional civil service appointment is a temporary position that fills a vacancy until a test can be properly administered and statutory requirements can be fulfilled to make a permanent appointment. 'p' rating designation is removed from the series 1993D and 1996A bonds, as the projects have been completed. Subject to market conditions on the sale date, the state expects to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. all or part of four series of California State Public Works Board bonds issued for the state. The refunding Reimbursing funds in restitution or repayment. The process of refinancing or borrowing money, ordinarily through the sale of bonds, to pay off an existing debt with the proceeds derived therefrom. series 1998C bonds proceeds are secured by state lease payments on parity parity or space parity, in physics, quantity that refers to the relationship between an object or process and the image that it can produce in a mirror. with any remaining series 1994A bonds and refunding series 1996B and 1996D bonds. The original series financed the construction of a prison facility in Monterey County, about five miles north of Soledad. It currently houses over 4,000 inmates in five housing units. The refunding series 1998D bonds are similarly secured, on parity with the remaining series 1993D bonds, which financed a similar-sized facility in Lassen County near Susanville. Refunding series 1998E bonds refinance a portion of the outstanding series 1996A bonds, originally issued to construct a 6,000-bed prison facility adjacent to an existing Corcoran facility in Kings County, including a substance abuse treatment facility. The refunding series 1998F bonds will be secured (on an underlying basis) with the remaining series 1993B bonds, which financed a prison facility in southwestern Fresno County, near Coalinga. The facility currently houses over 4,500 inmates. Acting through the Department of Corrections, the state covenants to budget and allocate lease payments for the lease terms, subject to standard abatement A reduction, a decrease, or a diminution. The suspension or cessation, in whole or in part, of a continuing charge, such as rent. With respect to estates, an abatement is a proportional diminution or reduction of the monetary legacies, a disposition of property by will, when provisions for damage, destruction or substantial interference with the use of the facilities. State statutes provide for continuous appropriations in the event a state budget is not in place by the time such appropriations are required. The refunding series 1998C, 1998D, and 1998E bonds utilize a reserve fund master indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. , which provides for a common debt service reserve in the event of rental abatement for damage or destruction to the leased property. The reserve fund is sized to cover the abatement risk associated with the two largest incorporated facilities for a six month period. The refunding series 1998F utilizes a reserve fund sized to maximum semi-annual debt service. The Department of Corrections currently houses over 158,000 inmates in 33 prison facilities, 38 camps, and 53 community facilities. A major prison construction program begun in 1983 is nearing completion, with a projected total capacity of about 177,000 inmates. Still, department projections suggest that additional construction will be necessary to reduce overcrowding overcrowding overcrowding of animal accommodation. Many countries now publish codes of practice which define what the appropriate volumetric allowances should be for each species of animal when they are housed indoors. Breaches of these codes is overcrowding. , which is likely to be accomplished with future general obligation and lease revenues bonds. OUTLOOK: POSITIVE Linked to California's rating, an upgrade may occur if the state continues to demonstrate consistent and improved financial position. In addition, the adoption of proposals for effective midyear mid·year n. 1. The middle of the calendar or academic year. 2. a. An examination given in the middle of a school year. b. midyears A series of such examinations. budget adjustment mechanisms would positively affect the state's rating, Standard & Poor's said. -- CreditWire -0-
RATINGS ASSIGNED
Rating
$32.36 million lease revenue refunding bonds
(Department of Corrections-St Prison-Soledad II)
series 1998C A
$61.44 million lease revenue refunding bonds
(Department of Corrections-St Prison-Susanville)
series 1998D A
$22.29 million lease revenue refunding bonds
(Department of Corrections-St Prison-Corcoran II)
series 1998E A
$47.61 million lease revenue refunding bonds
(Department of Corrections-St Prison-Coalinga)
series 1998F A
OUTSTANDING RATINGS AFFIRMED
(Dept of Corrections-Soledad II Prison) lease bonds series 94A,
refunding lease bonds series 1996B, 1996D, and 1998C A
(Department Of Corrections-St Prison-Susanville)
lease bonds series 1993D A
Lease revenue bonds (Department of Corrections-St
Prison-California Substance Abuse Treat Facility,
Corcoran II) series 1996A A
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