Printer Friendly

ALBUQUERQUE WATER & SEWER REVENUE BONDS 'AA-' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Dec. 30 /PRNewswire/ -- Albuquerque, N.M.'s $106.7 million joint water and sewer system refunding and improvement revenue bonds, series 1994A and $9.2 million joint water and sewer system taxable refunding revenue bonds, series 1994B are rated "AA-" by Fitch. Outstanding parity bonds totaling $122.8 million also are rated "AA-." The bonds will be sold through negotiation the week of Jan. 3, 1994 through a syndicate led by Smith Barney Shearson, Inc.
 Historical financial operations of the system are good, and rates are competitive within New Mexico and in the low to moderate range compared to similar cities in the Central and Southwestern U.S. The service area continues to enjoy good growth and a further broadening of the customer base is a positive. An adverse final ruling in litigation concerning the Pueblo of Isleta's adopted water quality standards could result in substantial additional capital and operating costs for the system. However, resulting projected rate increases should still leave rates competitive. At 1.50x, the city's target debt service coverage ratio is greater than that required by the indenture and has historically been budgeted for, and with one exception met, since at least 1989. Maintenance of coverage at the target level will require annual rate increases in fiscal 1995 and subsequent years. The credit trend is stable.
 -0- 12/30/93
 /CONTACT: Ruth M. Levine, 212-908-0605, or Alan Spen, 212-908-0594, both of Fitch/


CO: ST: New Mexico IN: SU: RTG

MP -- NY013 -- 8033 12/30/93 11:30 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 30, 1993
Words:254
Previous Article:THERMO REMEDIATION SELLS ADDITIONAL SHARES IN PUBLIC OFFERING OF COMMON STOCK
Next Article:AIR PACKAGING TECHNOLOGIES' AIR BOX INFLATABLE PACKAGING TO BE FEATURED ON FIRST EPISODE ON NEW NBC TV 'VIPER' SERIES ON JAN. 2, 1994
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters