Printer Friendly

NEW YORK STATE ENVIRONMENTAL FACILITIES CORPORATION'S $75 MILLION REVENUE BONDS 1993B RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Sept. 17 /PRNewswire/ -- The New York State Environmental Facilities Corporation's $75.45 million state water pollution control revolving fund revenue bonds, series 1993 B (pooled loan issue), are rated "AA" by Fitch. The credit trend is stable. These bonds are expected to be sold through negotiation during the week of Sept. 20, 1993, by a syndicate led by Bear, Stearns & Co. Inc. The credit trend is stable.
 The New York State Environmental Facilities Corporation (EFC), the state revolving fund, has established both high quality credit and a successful borrowing and lending program. Legal protections are complex, but bondholders are well protected by several layers of security. Bonds are secured initially by the repayment stream from each particular pool of borrowers, but the general reserve ultimately available to bondholders links multiple issues of EFC bonds. Although each pool is closed once bonds are sold for that group of local unit issuers, the use of the general reserve provides broad protection under the financing indenture. Therefore, the rating is programmatic in nature, and the quality of the participants in any one pool is not a credit factor. Over time, the credit of the underlying participants is expected to be of about average quality. Therefore, with the various levels of security, the underlying support of payments for debt service is enhanced to the higher level.
 The EFC serves as the state's revolving fund administrator for purposes of sewerage system improvements. In this role, the EFC provides loans to local units within the state from both EFC bond proceeds and federal and state moneys. The borrowing program is significant, with the corporation providing low interest loans to a variety of issuers throughout the state. Requirements imposed by the federal government to receive funds are numerous and include a required proportion of state matching funds. EFC then uses these funds primarily to create reserves designed to protect bondholders. EFC's bonds are payable from local unit loan repayments as well as various funds established by the bond documents.
 -0- 9/17/93
 /CONTACT: Andrea R. Bozzo of Fitch, 212-908-0515/


CO: New York State Environmental Facilities Corporation ST: New York IN: ENV SU: RTG

TW -- NY036 -- 3183 09/17/93 15:48 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 17, 1993
Words:368
Previous Article:PLAYBOY ENTERTAINMENT GROUP ANNOUNCES REORGANIZATION
Next Article:MASSACHUSETTS BAY TRANSPORTATION AUTHORITY'S $180 MILLION NOTES RATED 'F-1' BY FITCH -- FITCH FINANCIAL WIRE --
Topics:

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