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MOODY'S ASSIGNS 'MIG 1' RATINGS TO WEST HAVEN, CONN., STATE-GUARANTEED G.O. BANs AND G.O. INTERIM FUNDING OBLIGATIONS; PROVIDES NEEDED CASH

MOODY'S ASSIGNS 'MIG 1' RATINGS TO WEST HAVEN, CONN., STATE-GUARANTEED G.O. BANs AND G.O. INTERIM FUNDING OBLIGATIONS; PROVIDES NEEDED CASH
 NEW YORK, April 13 /PRNewswire/ -- Effective today, Moody's Investors Service assigned a "MIG 1" rating to the City of West Haven, Conn., $12.7 million state-guaranteed general obligation bond anticipation notes (BANs) and a "MIG 1" to the city's $12.0 million state-guaranteed general obligation interim funding obligations expected through negotiation today.
 Highest quality security for the City of West Haven's general obligation notes is based on the State of Connecticut's general obligation guarantee of principal and interest on these notes. Satisfactory mechanisms to insure that the guarantee can be fulfilled in a timely manner have been established. In addition, the state's ability to draw on its available cash or to rely on strong debt market access to meet its guarantee obligation has been considered.
 Successful marketing of the renewal BANs would alleviate concern about the city's ability to pay BANs due April 15, 1992. This concern was a factor contributing to the recent lowering of the city's general obligation bond rating from "Baa1" to "Ba." Despite this positive development, the "Ba" rating on the city's long-term general obligation bonds remains in place given the city's still-strained cash position, even after the current deficit funding obligation. A second series of interim deficit-financing notes will be needed to meet the city's cash needs for the last two months of the current fiscal year, which ends June 30, 1992.
 Although the West Haven Finance Planning and Assistance Board has been established concurrent with issuance of the state-guaranteed obligations, and Moody's expects that financial improvement will result, it is too early in the remedial process to assess the pace of these improvements. A three-year financial plan to be developed by the city and approved by the board will be required in conjunction with the issuance of long-term bonds to fund the notes. A viable financial plan and a demonstrated spirit of cooperation between the city and board will be critical to the city's long-term financial stability and credit standing.
 -0- 4/13/92
 /CONTACT: Joan Dougherty, 212-553-7737, or Steven Hochman, 212-553-0338, both of Moody's/ CO: City of West Haven ST: Connecticut IN: SU: RTG


GK-OS -- NY070 -- 7876 04/13/92 15:14 EDT
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Date:Apr 13, 1992
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