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SAN FRANCISCO STATE BUILDING AUTHORITY $61.6 MILLION BONDS 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Sept. 8 /PRNewswire/ -- The San Francisco State Building Authority, Calif.'s $61.6 million (approximately) refunding lease revenue bonds (State of California Department of General Services Lease) 1993 series A are rated "A+" by Fitch. The bonds will be sold through negotiation by a syndicate led by Bank of America N.T. & S.A. on Sept. 21. The credit trend is uncertain.
 The "A+" rating is based on the project's essentiality, the financing's legal structure, and California's overall credit quality. The project is a complete and occupied office building housing the state's Public Utilities Commission. California's long-term credit prospects have weakened, as the recession continues to be deeper than expected and the state has built up a large accumulated deficit over this period. While budget plans call for elimination of the deficit, and revenues have been on target for several months, restoration of financial stability has yet to be accomplished. The uncertain credit trend reflects the economy's unclear course, as well as the state's yet unproven ability to realize its budget forecasts.
 Bond proceeds will be used to refund all of the authority's 1986 certificates of participation, which refinanced a 1983 issue. The original issue financed construction of the State Building in San Francisco, which was completed and opened in January 1986. The five-story building has a steel frame and sustained no structural damage during the 1989 earthquake. Legal features are strong, including the state's covenant to take all actions necessary to include the lease payment in its annual budget. The refunding is expected to yield about $4.3 million in present value savings, close to 7 percent of the refunding issue size.
 -0- 9/8/93
 /CONTACT: Amy S. Doppelt, 212-908-0514, or Claire G. Cohen, 212-908-0552, both of Fitch/


CO: San Francisco State Building Authority ST: California IN: CST SU: RTG

TS -- NY069 -- 9906 09/08/93 14:46 EDT
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Publication:PR Newswire
Date:Sep 8, 1993
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