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CONNECTICUT $50 MILLION CLEAN WATER FUND REVENUE BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Jan. 6 /PRNewswire/ -- Connecticut's $50 million Clean Water Fund Revenue Bonds, 1993 Series, are rated 'AA' by Fitch. The rating also applies to $205 million outstanding parity bonds. The credit trend is stable.
 The 1993 Series represents the third bond issuance by Connecticut for its state revolving fund program (SRF) in the Clean Water Fund. To date, the program has been prudently managed by a partnership of the state's Department of Environmental Protection and the Office of the State Treasurer. As currently envisioned, the state expects to issue approximately $505 million revenue bonds to fund its SRF Program through 1995. It expects to continue issuing additional state general obligation bonds as equity contributions to the program, which maintains extremely strong state support. The loan portfolio of anticipated borrowers through 1996 also is strong; the weighted average rating of the pool is in the high 'A' category.
 Furthermore, the bond program's structure lends exceptional default tolerance to the portfolio. A stress test in which more than one-half of the existing 1991 and 1992 loans and proposed 1993 loans were defaulted for the entire twenty year amortization period demonstrates that no bond default would result during that time.
 Under the Federal Water Quality Act of 1987, which amended the Clean Water Act of 1972, the federal grants program for wastewater treatment projects was eliminated and succeeded by SRF programs. Federal capitalization grants are awarded through such programs to qualifying states to establish and capitalize SRFs to provide loans to local governments for wastewater treatment projects. To receive such a federal grant, a state must provide matching funds equal to at least 20 percent of the federal capitalization grants. The state of Connecticut has already provided more than its 20 percent matching share of all federal capital grants expected to be received through 1995.
 -0- 1/6/93
 /CONTACT: Andrea R. Bozzo, 212-908-0515, or Stewart Simon, 212-908-0508, both of Fitch/


CO: State of Connecticut ST: Connecticut IN: SU: RTG

PS -- NY037 -- 2199 01/06/93 12:30 EST
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Date:Jan 6, 1993
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