Printer Friendly

NEW YORK JOB DEVELOPMENT AUTHORITY GUARANTEED BONDS RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

NEW YORK JOB DEVELOPMENT AUTHORITY GUARANTEED BONDS RATED A+' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Nov. 6 /PRNewswire/ -- The New York State Job Development Authority's $60 million state guaranteed special purpose bonds, 1991 Series A, are rated A+' by Fitch. The bonds are expected by negotiation with WR Lazard, Laidlaw & Mead, Inc., and Donaldson, Lufkin & Jenrette Securities Corp. on or about Nov. 12. Maturity is March 1, 1997, without option to call. Punctual payment of principal and interest on the bonds is constitutionally guaranteed by the state of New York, although actual debt service on JDA's bonds is met from program revenues and the guarantee provision has never been exercised in the nearly 30 years of operations.
 The rating reflects the unconditional guarantee of the state. New York has a broad and diversified economy and is one of the nation's wealthiest states. While its debt structure utilizes a multiplicity of debt instruments, tax supported debt is only moderately burdensome, amounting to $1,108 per capita and 5 percent of personal income. Financial operations have been problematic in recent years, as changing conditions have made revenues difficult to forecast and expenditures hard to control. The budget for the current fiscal year was designed to place operations in balance and to eliminate a deficit of $1 billion. With the fiscal year half over, a gap of nearly $700 million, or somewhat more than 2 percent of estimated revenues, has opened. The new revenue forecast is only 1 percent lower with the remainder of the gap accounted by expenditure overruns. Plans to close the gap are expected to be announced soon. The credit trend for the state remains uncertain in light of the economy and the as yet unknown response to the potential deficit.
 JDA operates a program of loans to business enterprises primarily through its state guaranteed bonds, although there are other, separately secured programs. The special purpose program is sound and no claims have been made on the state. Voters have consented to enlargement of the guarantee several times and an additional $300 million was on the Nov. 5 ballot. Loan and investment income of JDA cover interest generously and there are retained earnings of $4.6 million. The current issue, which will retire $50 million in commercial paper notes, is not federally tax exempt.
 -0- 11/6/91
 /CONTACT: Claire G. Cohen of Fitch, 212-908-0552/ CO: New York State Job Development Authority ST: New York IN: SU: RTG SM -- NY051 -- 1732 11/06/91 12:49 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 6, 1991
Words:418
Previous Article:GOLDEN TRIANGLE FORGES AHEAD; MERGER NEGOTIATIONS DEVELOPING INTO MAJOR ACQUISITION
Next Article:LSI INDUSTRIES INC. OPERATING RESULTS QUARTER ENDED SEPT. 30, 1991


Related Articles
LOS ANGELES $200 MILLION WASTEWATER REVENUES RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
THE MEDICAL CENTER OF CENTRAL MASSACHUSETTS BONDS RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
SANTEE COOPER, S.C., REVENUE BONDS RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
ORANGE & ROCKLAND RATINGS ON FITCHALERT NEGATIVE -- FITCH FINANCIAL WIRE
SAN BERNARDINO COUNTY (CALIF.) TRANSIT AUTHORITY BONDS RATED 'A+' -- FITCH FINANCIAL WIRE --
PHOENIX IDA COLLATERALIZED LOC HOUSING BONDS LOWERED TO 'A-' BY FITCH -- FITCH FINANCIAL WIRE --
VIRGINIA ELECTRIC $680 MILLION SENIOR DEBT RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
OGLETHORPE POWER CORP. (GA.) PCR BONDS RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
ARVADA (COLO.) SALES TAX BONDS RATED 'A+', HIGHWAY BONDS 'A' BY FITCH -- FITCH FINANCIAL WIRE --
OLD DOMINION ELECTRIC CO-OP (VA) REVENUE BONDS RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters