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LOS ANGELES CO. CERTIFICATE OF PARTICIPATION RATED 'A+' BY FITCH --FITCH FINANCIAL WIRE--

 LOS ANGELES CO. CERTIFICATE OF PARTICIPATION RATED 'A+' BY FITCH
 --FITCH FINANCIAL WIRE--
 NEW YORK, Sept. 11 /PRNewswire/ -- Los Angeles County, Calif.'s $45 million


certificates of participation 1992 Series B (LAC-CAL Equipment Program) are rated 'A+' by Fitch. The certificates will be sold through negotiation by a syndicate led by Grigsby Brandford & Co., Inc. on Aug. 15. The credit trend is stable.
 The Los Angeles area's economy is vast and diverse, factors that will play a major role in its emergence from the current weakness. Although one of the area's major industries is in the midst of long-term retrenchment, the county's role as a foreign trade, entertainment, tourism, and finance center, along with the presence of above-average income levels and continued population growth, will provide the impetus for future development. Recent civil unrest has hurt the area's image and may deter some growth, but significant federal assistance and community focus on rebuilding could offset some of the negative impact.
 The county's financial operations have been sound and continue to be very well managed. Despite ongoing pressures to make revenues meet growing expenditures, especially in the social services areas, and previous uncertainty surrounding state funding, the county has managed to run general fund operating surpluses in four of the last five years. Fiscal 1992 operations are estimated to show about breakeven results, despite the county's weak economic performance and the substantial changes in state funding implemented as a result of the state's fiscal imbalance. The general fund is expected to show about a $193 million free fund balance, representing about 2.3 percent of operating expenditures. This level is approaching low, although it is not surprising given the county's fiscal stress.
 The county is in the process of adjusting its fiscal 1993 budget, which was adopted in late July, to reflect recent changes in the state's budget, which was signed into law Sept. 2. The county's adopted budget is austere; it will require great effort to achieve balanced operations. The most recent estimates project a $530 million revenue loss, both from state and local sources. The county already has enacted $178 million in budget balancing measures, including an early separation program, suspension of cost of living adjustments, continuation of a hiring freeze, and use of various special funds. The county Board of Supervisors will meet over the next few weeks to close the remaining $351 million budget gap with a combination of pension cost savings, salary reductions, layoffs, and programmatic cuts. This remaining imbalance represents about 3 percent of the county's total $11.3 billion operating budget.
 Certificate proceeds will be used to redeem bond anticipation notes (BANs) issued since January and to provide interim financing for the equipment. The lease is strong, with the county covenanting to budget and appropriate for the lease payment. The county is required to maintain fire and extended coverage equal to the lesser of the equipment's replacement value or the certificates outstanding, and to provide business interruption insurance equal to two years' lease payments.
 The current debt burden is low despite regular county issuance, primarily lease transactions. The county has a board-approved debt management policy that should keep issuance to affordable levels. Capital needs are substantial, including a replacement of the county's largest medical center.
 -0- 9/11/92
 /CONTACT: Amy S. Doppelt of Fitch, 212-908-0514/ CO: ST: California IN: SU: RTG


TM -- NY064 -- 8612 09/11/92 16:18 EDT
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Date:Sep 11, 1992
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