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CONNECTICUT $198 MIL. TRANS. RFD. BONDS RATED 'AA-' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Sept. 3 /PRNewswire/ -- Connecticut's $198.0 million Special Tax Obligation Refunding Bonds, Transportation Infrastructure Purposes, 1993 Series B, are rated "AA-" by Fitch. The bonds are expected to be sold Sept. 8 through a syndicate led by Bear, Stearns & Co., Inc. Bonds will be due serially Oct. 1, 1994-2006. Call provisions are yet to be determined.
 The transportation infrastructure bonds are not general obligations of the state but are payable from pledged revenues derived from highway-related taxes and fees. Pledged revenues provide amply for debt service on the special tax bonds, which have been issued for a well planned and monitored long-term transportation program.
 The trend of underlying growth in pledged revenues in the past four years has reflected the recessionary conditions in the state and, absent rate increases, has been negative or flat. The motor fuels tax has been consistently increased in recent years and further increases are scheduled through 1997. The higher rates offset not only the collection trend but also certain costs of the Department of Motor Vehicles and the Highway Patrol which have been shifted to the Special Transportation Fund.
 Pledged revenues in 1992-93 covered transportation infrastructure debt requirements by 2.8 times. When debt service on general obligation transportation bonds is included, coverage drops to 2.2 times, and will remain at about that level annually through 1997. The credit trend, accordingly, remains stable.
 -0- 9/3/93
 /CONTACT: Claire G. Cohen of Fitch, 212-908-0552/


CO: ST: Connecticut IN: SU: RTG

LG -- NY010 -- 8731 09/03/93 09:40 EDT
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Publication:PR Newswire
Date:Sep 3, 1993
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