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MOODY'S COMMENTS ON CONTROVERSIAL REMARKS OF NEWLY ELECTED JERSEY CITY MAYOR

 MOODY'S COMMENTS ON CONTROVERSIAL REMARKS
 OF NEWLY ELECTED JERSEY CITY MAYOR
 NEW YORK, Nov. 10 /PRNewswire/ -- The newly elected mayor of Jersey City suggested yesterday in a statement carried in the press that the city might be facing bankruptcy prior to the conclusion of his term which expires July of 1993. In our discussion with the mayor today, he stated that it is not his intention to seek bankruptcy protection for the city now or in the future. The mayor's remarks appear to be an attempt to focus the attention of the electorate and the state on the magnitude of the city's current financial problems. The city has experienced significant financial strain over the last several years culminating in the issuance of $128 million in Fiscal Year Adjustment Bonds (largely deficit financing) in August and October, 1991. As noted in our report of Feb. 11, 1992, a critical rating consideration for the city continues to be its ability to achieve recurring fiscal balance in the face of the region's ongoing recession and continuous deterioration in property tax collection rates.
 The city has approximately $331 million in general obligation long term debt outstanding. Ninety-six percent of that debt has been issued under the state's Qualified Bond Program and thus, if not insured, is rated "A." The city's unenhanced and non-qualified debt is currently rated "Baa." Moody's is currently reviewing the city's long term rating in conjunction with the schedule sale of $11.2 in bond anticipation notes to be sold through public bids on Nov. 17.
 -0- 11/10/92
 /CONTACT: Marci Herzlinger Tavashi, assistant vice president, 212-553-7166, Michael Johnston, vice president-manager Mid-Atlantic region, 212-553-7810, or Karl Jacob, assistant vice president, 212-553-4833, all of Moody's/ CO: Moody's Investors Service ST: New Jersey IN: SU:


LD-SM -- NY107 -- 9507 11/10/92 17:44 EST
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Date:Nov 10, 1992
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