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COLORADO TAX REVENUE ANTICIPATION NOTES RATED 'F-1+' BY FITCH -- FITCH FINANCIAL WIRE --

 COLORADO TAX REVENUE ANTICIPATION NOTES RATED 'F-1+' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Sept. 9 /PRNewswire/ -- The state of Colorado's $300 million (approximately) general fund Tax and Revenue Anticipation Notes (TRAN) Series 1992 are rated 'F-1+' by Fitch. The notes will be sold through negotiation by a syndicate led by Dain Bosworth Inc. on or about Sept. 15.
 The rating is based on the substantial resources available to the state treasurer to fulfill the covenant to use such funds, if necessary, to repay the notes. These funds include an ample projected year-end general fund cash surplus. The borrowable funds provide room for significant revenue and expenditure fluctuations and school district loan defaults without threatening the notes' repayment.
 TRAN proceeds will be used to assist the state's general fund cash flow during fiscal 1993. The borrowing primarily is necessary because of a new school district loan program. Under the program, the state makes loans to school districts to fund the districts' individual cash flow shortfalls, then is repaid when the districts' individual cash flows improve. The state's general fund is not expected to experience any temporary cash shortfalls this year, though it has in prior years. Internal borrowing covered these cash shortages in the last two fiscal years, and TRANs were issued in several earlier years. Additional school district cash needs will likely exist after this note sale, and the state is authorized to issue additional notes on par with these, but currently plans to cover these shortfalls from the vast borrowable resources.
 The general fund cash flow for fiscal 1993 projects a $316.8 million year-end cash surplus after the notes are repaid, providing just over 2 times(x) coverage of debt service on the notes from the general fund alone. The borrowable resources, which consist of the general fund and numerous other state funds, are vast, providing total note repayment coverage of 3.4x. Net of the projected cash surplus in the general fund, which has been vulnerable to fluctuation in the past, the borrowable resources cover note principal and interest 2.3x. Legal protections are strong, with the state treasurer covenanting to provide monthly cash flow updates and to take explicit measures to protect the note repayment if the projections reveal anticipated deficiencies. These measures include borrowing from the sizeable internal resources.
 -0- 9/9/92
 /CONTACT: Amy S. Doppelt, 212-908-0514, or Claire G. Cohen, 212-908-0552, both of Fitch/ CO: ST: Colorado IN: SU: RTG


PS -- NY080 -- 7671 09/09/92 16:37 EDT
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Date:Sep 9, 1992
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