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VIRGINIA PUBLIC SCHOOL AUTHORITY REFUNDED BONDS RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Sept. 2 /PRNewswire/ -- Certain maturities of the Virginia Public School Authority School Financing Bonds, Resolution 1963 and Resolution 1987, are raised to "AAA" from "AA" by Fitch.
 The "AAA" rating reflects the fact that the refunded bonds are secured by an irrevocable escrow composed of direct, non-callable general obligations of the United States Government. Ernst and Young verified the cashflow sufficiency in the escrow demonstrating that the escrowed securities plus an initial cash deposit are sufficient to pay interest, principal and the redemption price of the refunded bonds to their respective call dates.
 The government obligations mature in varying lengths of time prior to the scheduled debt service requirements and call date of the refunded bonds. The authority entered into a forward purchase agreement with Merrill Lynch Capital Services of New York. The provisions of the agreement give Merrill the option to sell to the authority new government obligations with available cash balances and proceeds from the original United States Government obligations already held in escrow. The new government obligations must mature in time and in sufficient amounts to meet the debt service requirements of the refunded bonds.
 The details of the 1963 and 1987 Resolution bonds to be refunded and their call provisions are listed below.
 1963 Resolution Bonds
 Virginia Public School Authority, School Financing Bonds series 1984A dated May 1, 1984; all bonds ($1.865 million) maturing on Jan. 1, 1994 and 2004, will be escrowed to maturity.
 Virginia Public School Authority, School Financing Bonds Authority, Series 1985A dated May 1, 1985; all bonds (1.350 million) maturing on and after Jan. 1, 1994 and Jan. 1, 1995 will be escrowed to maturity.
 Virginia Public School Authority Financing Bonds, Series 1985B dated Oct. 1, 1985; all bonds ($1.010 million) maturing on Jan. 1, 1994 through Jan. 1, 1995 will be escrowed to maturity.
 Virginia Public School Financing Authority, School Financing Bonds Series 1986A dated June 1, 1986; all bonds ($3.6 million) maturing on Jan. 1, 1994 through Jan. 1, 1996 will be escrowed to maturity.
 Virginia Public School Financing Authority, School Financing Bonds Series 1986A dated June 1, 1986; all bonds ($1.2 million) maturing on and after Jan. 1, 1997 will be called on Jan. 1, 1996 at a price of 100.5 plus accrued interest to Jan. 1, 1996.
 Virginia Public School Authority, School Financing Bonds Series 1986B dated June 1, 1986; all bonds ($2.070 million) maturing on Jan. 1, 1994 through Jan. 1, 1996 will be escrowed to maturity.
 Virginia Public School Authority, School Financing Bonds Series 1986B dated June 1, 1986; all bonds ($690,000) maturing on and after Jan. 1, 1997 will be called on Jan. 1, 1996 at a price of 102 plus interest accrued.
 Virginia Public School Financing Authority, School Financing Bonds Series 1987A date April 1, 1987; all bonds ($11.14 million) maturing on Jan. 1, 1994 through Jan. 1, 1997 will be escrowed to maturity.
 Virginia Public School Financing Authority, School Financing Bonds Series 1987A dated April 1, 1987; all bonds ($23.66 million) maturing on and after Jan. 1, 1998 will be called on Jan. 1, 1997 at a price of 102 plus interest accrued.
 1987 Resolution Bonds
 Virginia Public School Authority, School Financing Bonds, Series 1987A Refunding dated Aug. 1, 1987; all bonds ($6.98 million) maturing on Jan. 1, 1998 through Jan. 1, 1999 will be called on Jan. 1, 1996 at a price of 102 plus accrued interest.
 Virginia Public School Authority, School Financing Bonds Series 1987B dated Sept. 15, 1987; all bonds ($4.79 million) maturing on and after Jan. 1, 1998 will be called on Jan. 1, 1996 at a price of 102 plus interest accrued.
 Virginia Public School Authority School Financing Bonds Series 1988A dated April 1, 1988; all bonds ($25.2 million) maturing on Jan. 1, 1999 through Jan. 1, 2008 will be called on Jan. 1, 1997 at a price of 102 plus interest accrued.
 Virginia Public School Authority, School Financing Bonds Series 1988B dated Oct. 1, 1988; all bonds ($6.755 million) maturing on Jan. 1, 1999 through Jan. 1, 2000 will be called on Jan. 1, 1997 at a price of 102 plus interest accrued.
 Virginia Public School Authority, School Financing Bonds Series 1989A dated March 1, 1989; all bonds ($4.010 million) maturing on Jan. 1, 1998 through Jan. 1, 1999 will be called on Jan. 1, 1997 at a price of 102 plus interest accrued.
 Virginia Public School Authority, School Financing Bonds Series 1989B dated Oct. 1, 1989; all bonds ($26.86 million) maturing on Jan. 1, 2000 through Jan. 1, 2010 will be called on Jan. 1, 1998 at a price of 102 plus interest accrued.
 Virginia Public School Authority, School Financing Bonds Series 1990A dated April 1, 1990; all bonds ($33.64 million) maturing on Jan. 1, 2000 through 2010 will be called on Jan. 1, 1998 at a price of 102 plus interest accrued.
 Virginia Public School Authority, School Financing Bonds Series 1990B dated Dec. 1, 1990; all bonds ($14.31 million) maturing on Jan. 1, 2002 through Jan. 1, will be called on Jan. 1, 1999 at a price of 102 plus interest accrued.
 Virginia Public School Authority, School Financing Bonds Series 1991A dated May 1, 1991; all bonds ($11.36 million) maturing on Jan. 1, 2002 through Jan. 1, 2007 will be called on Jan. 1, 1999 at a price of 102 plus interest accrued.
 Virginia Public School Authority, School Financing Bonds Series 1991B dated Nov. 1, 1991; all bonds ($20.63 million) maturing on Jan. 1, 2004 through Jan. 1, 2012 will be called on Jan. 1, 2000 at a price of 102 plus interest accrued.
 Virginia Public School Authority, School Financing Bonds, Series 1991C Refunding dated Dec. 1, 1991; all bonds ($4.45 million) maturing on and after Jan. 1, 2009 will be called on Jan. 1, 2002 at a price of 102 plus interest accrued.
 Virginia Public School Authority, School Financing Bonds, Series 1992A dated April 15, 1992; all bonds ($24.045) million maturing on Jan. 1, 2004 through Jan. 1, 2012 will be called on Jan. 1, 2002 at a price of 102 plus interest accrued.
 -0- 9/2/93
 /CONTACT: Gamal J. Harris of Fitch, 212-908-0541/


CO: Virginia Public School Authority ST: Virginia IN: SU: RTG

TS -- NY058 -- 8438 09/02/93 12:53 EDT
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Date:Sep 2, 1993
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