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ALABAMA $255.6 MILLION GENERAL OBLIGATION REFUNDING BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --

 ALABAMA $255.6 MILLION GENERAL OBLIGATION REFUNDING
 BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
 NEW YORK, March 4 /PRNewswire/ -- Alabama's $255.6 million general obligation refunding bonds, 1993 Series, are rated 'AA' by Fitch. The bonds, which were priced today, will not be delivered until on or about Jan. 28, 1993, pursuant to a contract of purchase with J.P. Morgan Securities Inc., the underwriter. The new bonds will mature semi- annually March 1, 1995, through Sept. 1, 2000, and are not callable.
 Bond proceeds when received at delivery will be placed in an escrow and will be used to refund a portion of general obligation refunding bonds, 1983 Series A and B, on March 1, 1993, by call at a redemption price of 103 percent. The refunding is being undertaken to achieve debt service savings which will be largely reflected in fiscal years 1993-95.
 Under the contract of purchase with J.P. Morgan Securities for the January 1993 delivery to take place, an approving legal opinion (including that the interest on the bonds is tax exempt) must be furnished and the state may not be in default on its general obligation bonds. In addition to the contract with the underwriter, the state has entered into a standby bond purchase agreement with Morgan Guaranty Trust Co. of New York under which, subject to the same conditions, the bank shall substitute, if necessary, for the underwriter.
 Alabama's debt control and financial stability provide sound bondholder security. General fund resources are minor compared with overall state operations, but are ample to provide for general obligation debt service. Continued stability is expected through the state's strict requirement for financial balance, although operating pressure is very evident and a 5 percent general fund pro-ration is in effect. Debt of the state, including general obligations and other commitments, amounts to about $1.4 billion, and represents a moderate burden of $353 per capita and 2.3 percent of personal income.
 -0- 3/4/92
 /CONTACT: Claire Cohen of Fitch, 212-908-0552/ CO: ST: Alabama IN: SU: RTG


CK -- NY068 -- 5006 03/04/92 14:02 EST
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Publication:PR Newswire
Date:Mar 4, 1992
Words:351
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