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STATE OF TEXAS NOTES RATED 'F-1+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, July 17 /PRNewswire/ -- Texas's $1.4 billion Tax and Revenue Anticipation Notes, Series 1993, and $300 million Tax and Revenue Anticipation Commercial Paper Notes, Series 1994, are rated 'F-1+' by Fitch. The Series 1993 Notes will be offered for bids on Sept. 23, while the commercial paper notes are not expected to be issued until January 1994. The Series 1993 notes are due Aug. 31, 1994 the last day of the state's fiscal year, and are not callable. Final maturity of the commercial paper, if issued, will also be Aug. 31, 1994. Liquidity for the commercial paper will be furnished by the state treasury, which has ample assets.
 The notes are being issued for cash management purposes and are payable from general revenue fund transfers. They are not general obligations of the state.
 Texas is an annual issuer of operating notes. The amount this year represents only about 5% of anticipated cash flow, a low proportion. Coverage for the borrowing at maturity from ending cash balance and borrowable resources is estimated to be 1.4 times and the safety margin from available funds as a percentage of cash flow at about 2%. While the safety margin this year is fairly slim, Texas has an excellent record of cash management, revenue estimation tends to be conservative and operations in each of the past two fiscal years have surpassed expectations. The economy has been performing well and economic assumptions for fiscal 1994 appear reasonable.
 -0- 9/17/93
 /CONTACT: Claire G. Cohen of Fitch, 212-908-0552/


CO: ST: Texas IN: SU: RTG

KD -- NY046 -- 3261 09/17/93 17:48 EDT
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Publication:PR Newswire
Date:Sep 17, 1993
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