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PENNSYLVANIA $100 MILLION CP PROGRAM RATED 'F-1+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, March 9 /PRNewswire/ -- Pennsylvania's General Obligation Bond Anticipation Notes, Series 1993 A, a commercial paper program not to exceed $100 million, are rated 'F-1+' by Fitch. The notes are general obligations of the commonwealth, as are bonds which will ultimately be issued. The notes are issued in anticipation of various types of bonds, and as they are permanently financed, new notes may be substituted. Commonwealth general obligation bonds are rated 'AA-' by Fitch.
 Daiwa Bank is providing a revolving credit agreement for liquidity. While there are some conditions to the commitment of the bank, primarily a commonwealth default on debt or a moratorium, they are not onerous. The bank commitment is for the principal amount of the program and interest is intended to be met from the general fund. The program will expire on Sept. 17, 1993.
 Since payment of the notes is expected to be made from proceeds of Pennsylvania general obligation bonds, the primary focus is the quality of long-term obligations. Such bonds are rated 'AA-', and the commonwealth's ability to access the market is well proven. Pennsylvania continues to have a moderate debt burden, with net tax- supported debt representing 2.6 percent of personal income. Amortization of outstanding debt is rapid, with about 74 percent due in 10 years. Financial operations in 1991-92 wiped out the previous year's deficit and this year balance is expected. Through February, revenues were slightly above estimates. The Governor has submitted a balanced budget for 1993-94, which is now under legislative consideration.
 Pennsylvania has been adversely affected by the recession, with employment in December nearly 3 percent below the 1990 peak; construction, manufacturing and trade have all been weak. The unemployment rate has been close to the national level and in February was 7.0 percent, the same as for the U.S. Personal income growth has also been approximating the national rate.
 -0- 3/9/93
 /CONTACT: Claire Cohen, 212-908-0552, of Fitch/


CO: Pennsylvania ST: Pennsylvania IN: SU: RTG

LR -- NY052 -- 4521 03/09/93 12:17 EST
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Date:Mar 9, 1993
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