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OREGON BOND BANK $6.7 MILLION REVENUE BONDS RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --

 OREGON BOND BANK $6.7 MILLION REVENUE BONDS RATED 'A' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Nov. 5 /PRNewswire/ -- The Oregon Bond Bank's $6.7 million revenue bonds, 1992 Series B and C (Oregon Economic Development Department) are rated 'A' by Fitch. This rating also applies to the $15.6 million outstanding parity bonds. The credit trend is stable. This issue is expected to be sold through negotiation during the week of November 16 by a syndicate led by Lehman Brothers, a division of Shearson Lehman Brothers.
 The 'A' rating is supported by the bond indenture requirement that these and additional bonds be structured in such a way that the loan repayments due on the bond bank loans and on their related collateral loans combine to equal at least 120% of annual bond debt service. Furthermore, additional cash flow is provided to the bonds by a diverse portfolio of 43 pledged loans to 32 borrowers in the par amount of $8.9 million, resulting in strong projected bond debt service coverage ranging from 1.44 times(x) to 2.29x. Another strength of the bond structure is that it includes no non-asset bonds. These features evidence that the Oregon Bond Bank Program, implemented by the state through its Special Public Works Fund (SPWF), is well conceived.
 Offsetting these strengths is the overall 'BBB' credit quality of the portfolio of loans of the program's 26 primary municipal borrowers. While the primary revenue sources securing the loan repayments are exempt from the state tax limitation initiative, the general finances of some primary borrowers have been affected. In addition, the current high levels of debt service coverage could be eroded if additional future direct loans are not pledged to additional parity bond issues.
 In 1985, the Oregon State Legislature created the SPWF with proceeds from the state lottery to be administered by the state's Economic Development Department. That legislation also authorized the issuance of up to $100 million in revenue bonds to establish an infrastructure bond bank program. These bonds are the fourth issuance under that program. In addition to the bond bank program, the SPWF also makes direct grants and direct loans to local governments for economic development. Since 1985, the department has awarded over $41 million in direct SPWF grants and loans to over 100 local governments. The portfolio is current and there have been no defaults. All three programs require continued biennial lottery allocations by the Oregon State Legislature.
 -0- 10/5/92
 /CONTACT: Andrea R. Bozzo, 212-908-0515, or Stewart Simon, 212-908-0508, both of Fitch/ CO: Oregon Bond Bank ST: Oregon IN: FIN SU: RTG


SM -- NY131 -- 7926 11/05/92 16:35 EST
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Publication:PR Newswire
Date:Nov 5, 1992
Words:445
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