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/C O R R E C T I O N -- FITCH FINANCIAL WIRE/

 In NY119, Kansas Department of Transportation bonds affirmed at `AA' by Fitch, moved yesterday, a correction has been issued, due to changes in the first paragraph of the release. The corrected release follows:
 NEW YORK, April 22 /PRNewswire/ -- Kansas Department of Transportation's $250 million highway revenue bonds series 1993, are rated 'AA' by Fitch. The bonds, dated May 1, 1993 will be offered through negotiation by a syndicate led by Lehman Brothers, A.G. Edwards & Sons, Inc. and Smith Barney, Harris Upham & Co. Inc. Bonds will be due $144.4 million serially March 1, 1999-2008 with a $105.6 million term maturity due March 1, 2013; optional call dates and premiums are yet to be determined. The credit trend is stable.
 This issue is the third instalment of an authorized $890 million bonding program to be financed through fiscal 1997-98 as part of the state's comprehensive highway program adopted by the 1989 legislature. The overall program, approximately $5 billion, is intended to maintain and improve the state's highway system and is the state's major capital focus. These bonds are on a parity with $375 million Series 1992 and 1992A bonds sold last year. Freeway bonds, which had a prior claim on fuel taxes, were cash defeased July 1, 1992.
 Limited by the Master Resolution to a 20-year maturity, the bonds are special obligations of the state, secured by and payable from a gross pledge of all revenues in the State Highway Fund, the general operating fund for the department. While no specific revenues are pledged to the bonds, the state has covenanted to maintain revenues transferred or credited to the fund in an amount at least equal to 3.0x coverage of annual debt service. Issuance of additional bonds requires historic coverage of 3.0x projected maximum annual debt service.
 The State Highway Fund benefits from a broad-based and diverse revenue stream, although the legislature may alter (and has altered) the components and distribution formulas of the revenues credited to the fund. The fund currently includes the constitutionally dedicated state transportation revenues (59.5 percent of fuel taxes, and trip permits); 5.88 percent of the 4.25 percent portion of the now 4.90 percent state sales and compensating use tax; a transfer of 7.6 percent of the retailers sales tax credited to the general fund which was further reduced to 7.3 percent in fiscal 1993 by an across the board 3 percent departmental cut (scheduled to return to 7.6 percent July 1, 1993; and vehicle registration and license fees. Tax increases applicable through the current year were implemented at the time of the program's inception. Wide coverage margins exist, with projected maximum debt service for the full authorization ($85.8 million in 1997-98) covered 4.6x by actual 1991-92 revenues and 5.0x by projected 1992-93 revenues. Estimates appear conservative, forecasting no motor fuels revenue growth and a 5.2 percent annual inflation factor for construction.
 -0- 4/23/93
 /CONTACT: Claire G. Cohen, 212-908-0552, or Ruth Corson Maynard, 212-908-0596, both of Fitch/
 /PRNewswire -- April 23/


SH -- NY027 -- 9957 04/23/93 10:27 EDT
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Date:Apr 23, 1993
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