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MOODY'S CONFIRMS Baa1 RATING ON NEW YORK CITY GENERAL OBLIGATION BONDS

MOODY'S CONFIRMS Baa1 RATING ON NEW YORK CITY GENERAL OBLIGATION BONDS
 NEW YORK, March 2 /PRNewswire/ -- Effective today, Moody's Investors Service confirmed the Baa1 rating on the City of New York's General Obligation Bonds in conjunction with the planned sale on March 4 of approximately $800 million Fiscal 1992 Series D bonds. In addition to approximately $700 million current interest and capital appreciation bonds affected by this rating action, the current offering will include approximately $100 million FGIC-insured adjustable rate bonds, enhanced by a liquidity facility provided by FGIC Securities Purchase, Inc. The adjustable rate bonds are expected to be rated Aaa/VMIG1 upon receipt by Moody's of the insurance contract.
 In confirming the rating on the general obligation bonds, Moody's said: "The city's recent, more stable financial performance reflects seemingly realistic economic assumptions underlying the fiscal 1992 budget and reported progress in implementing planned staffing cuts and other budgeted reductions. Longer-term outlook still depends upon the degree of success in the city's efforts to establish recurring structural balance as envisioned in its recently-released financial plan.
 "The inclusion in this latest plan of specific actions to streamline and restructure city government and a more recently-announced proposal to reduce the level of reliance on transitional financing are positive steps, but the city's ability to achieve its long-term objectives remains uncertain. Because the city's downsizing proposals account for only about one-third of the total gap-closing program, the success of the total program remains largely dependent upon the timing and strength of economic recovery and appropriate actions by the state, the federal government, and others. Furthermore, the difficulty of sustaining still-to-be-implemented operating reductions in light of pressing service demands and achieving a planned 30 percent reduction in the general obligation bond-financed capital program without sacrificing needed infrastructure projects, underscores the managerial and political challenges inherent in achieving planned objectives."
 -0- 3/2/92
 /CONTACT: Daniel N. Helmowitz, 212-553-0340, or Kenneth Kurtz, 212-553-0834, of Moody's Public Finance Department/ CO: City of New York ST: New York IN: SU: RTG


KD-KW -- NY097 -- 4224 03/02/92 18:04 EST
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Publication:PR Newswire
Date:Mar 2, 1992
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