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WEST VA. SCHOOL BLDG. AUTH. $339.7 MIL BONDS 'A' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, June 2 /PRNewswire/ -- Fitch affirms West Virginia School Building Authority's `A' capital improvement revenue bonds in conjunction with the upcoming issue of $339.7 million Capital Improvement Revenue Refunding Bonds Series 1993. The bonds are expected by negotiation through Donaldson, Lufkin & Jenrette Securities Corp. on or about June 17. The capital improvement revenue bonds and the capital improvement revenue refunding bonds are secured on a parity basis by annual state appropriations. The credit trend is stable.
 This offering will be comprised of $143.6 million Series 1993A Fixed Rate bonds, and $196.1 million Series 1993B bonds represented by Donaldson, Lufkin & Jenrette Securities Corp.-service marked securities designated as $98 million Auction Series 1993B ("SHORTS") and $98 million Inverse Series 1993B ("LONGS"). The Fixed Rate Series 1993A bonds, dated June 15, 1993, include both serials and terms due July 1 on dates and in amounts to be determined, and are optionally callable at 102 beginning July 1, 2003. The Series 1993B bonds, dated the date of delivery, are optionally callable in equal amounts of LONGS/SHORTS on any regular interest payment date, occurring every 35 days. MBIA is expected to insure $95.3 million of the Series 1993A bonds and the entirety of the Series 1993B bonds. The combined proceeds of both series will provide approximately $179 million of new money for construction and refund approximately $153 million of portions of Series 1990A, 1990B, and 1991A issues to achieve a present value interest savings of approximately $6 million, or 4 percent. The authority has no incremental exposure to variable rate risk, as it pays a fixed interest rate, which will be the cap for the combined LONGS/SHORTS.
 Bonds of the authority have average credit characteristics. They are payable from annual appropriations made by the state in amounts sufficient to provide for debt service; debt service requires 1.1 percent of state general fund revenues in the current year. While lacking the strength of a general obligation, the bonds are issued for education, a state constitutional responsibility, and the capital program is part of a larger educational reform. West Virginia's tax- supported debt has declined to approximate an average level, equal to 3.8 percent of personal income. Although pressures remain, finances have stabilized and revenues through the first 10 months are slightly ahead of estimates; a 5 percent expenditure reduction is expected to result in balanced operations, avoiding borrowings. The economy remains fundamentally weak, but personal income growth has outstripped the nation since 1990. Both population and employment have shown recent gains.
 -0- 6/2/93
 /CONTACT: Claire G. Cohen, 212-908-0552, or Ruth Corson Maynard, 212-908-0596, both of Fitch/


CO: West Virginia School Building Authority ST: New York IN: CST SU: RTG

TM -- NY094 -- 4676 06/02/93 18:21 EDT
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Date:Jun 2, 1993
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