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CALIFORNIA PUBLIC WORKS BOARD $165 MILLION BONDS RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Oct. 12 /PRNewswire/ -- The State Public Works Board of the State of California's $165.5 million (approximately) lease revenue refunding bonds (the trustees of California State University) 1993 Series B (various State University projects) are rated `A+' by Fitch. The bonds will be sold through negotiation by a syndicate led by Goldman, Sachs & Co. on or about Oct. 20. The credit trend is uncertain.
 The overall strength of the California State University system, its operation as a state agency, the leased assets' integral role in the university's academic programs, and strong legal features provide assurance of legislative appropriations and rental payment. The 19 leased facilities, including classrooms, laboratories, offices, a dance facility, and a library are located at 13 of the university's 20 campuses. The rating also is based on California's credit prospects, which have weakened although long-term resources are considerable and debt position is excellent. Financial problems persist and the economy remains in recession. However, the state gradually has ratcheted down its revenue expectations, estimates have been reliable for several months, and the deficit plan calls for its elimination over 18 months. The credit trend will remain uncertain until there is firmer indication that financial control has returned.
 Bond proceeds are expected to refund all of the board's high technology facilities lease revenue bonds (the trustees of California State University) 1986 Series A (Long Beach facility) and 1986 Series A (San Luis Obispo facility) and $128.6 million, the 2017 term, of the lease revenue bonds (the trustees of California State University) 1992 Series A (various capital projects). The board expects to achieve $5.6 million in present value savings, about 3.8 percent of the refunded par amount. The 1986 bonds will be called on April 1, 1996, at 103 percent of par. The board anticipates redeeming the 1992 issue term bonds at 102 percent of par on Oct. 1, 2002.
 -0- 10/12/93
 /CONTACT: Amy S. Doppelt, 212-908-0514, or Claire G. Cohen, 212-908-0552, both of Fitch/


CO: California Public Works Board ST: California IN: SU: RTG

CK -- NY113 -- 1369 10/12/93 18:20 EDT
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Publication:PR Newswire
Date:Oct 12, 1993
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