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CALIFORNIA PUBLIC WORKS BOARD $178 MILLION BONDS 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Nov. 10 /PRNewswire/ -- The State Public Works Board of the State of California's $178,045,000 lease revenue bonds (The Regents of the University of California) 1993 series B are rated 'A+' by Fitch. The bonds will be sold through negotiation by a syndicate led by PaineWebber on or about Nov. 16. The credit trend is uncertain.
 The overall strength of the University of California system and the leased facilities' integral role in its academic programs, as well as the strong legal features, provide assurance of rental payment. The university has maintained strong financial results and a sound balance sheet despite significantly reduced state appropriations. California's long-term credit prospects 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 indications that financial control has returned.
 Bond proceeds will be used to finance or refinance six projects at five of the university's nine campuses. Lease provisions are strong and typical of Public Works Board issues. The Regents covenants to include the lease rental payment in its annual budget and further covenants to take all action necessary to make payment if the state does not include it in the budget or is operating without a budget. The Regents uses all legally available funds to make the payment. However, from a practical standpoint the lease rental is made from state appropriations because of a statute requiring the first dollars received from the state to be used to make payments to the board. One of the projects is nearly complete, and the other five will be finished at various dates through June 1995. Interest is capitalized six months beyond the expected completion date providing a sufficient cushion.
 -0- 11/10/93
 /CONTACT: Amy S. Doppelt, 212-908-0514, or Claire G. Cohen, 212-908-0552, both of Fitch/


CO: ST: California IN: SU: RTG

LD -- NY104 -- 2972 11/10/93 17:56 EST
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Date:Nov 10, 1993
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