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CONNECTICUT $115 MILLION GENERAL OBLIGATION BONDS RATED 'AA+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Oct. 6 /PRNewswire/ -- Connecticut's $65 million General Obligation Bonds (1993 Series F Current Interest Bonds) for bids on Oct. 26 and $50 million General Obligation Capital Appreciation Bonds (College Savings Plan, 1993 Series B) expected during the week of Oct. 11 through negotiation with a syndicate led by Merrill Lynch & Co. are rated 'AA+' by Fitch. Connecticut's $5.7 billion outstanding 'AA+' general obligations are affirmed and the credit trend remains stable. The capital appreciation bonds mature Dec. 1, 1995-2012. They are not callable. The current interest bonds mature Dec. 1, 1994-2010 and are callable beginning Dec. 1, 2003, at 101-1/2 percent.
 Credit prospects continue to be based on Connecticut's wealth and economic resources. Financial stability has been restored, with surplus achieved in 1991-92 and 1992-93. While debt is high, the level is manageable. As yet, there is no evidence of real economic recovery in the state, but declines appear to have stabilized.
 Financial operations in 1992-93 exceeded budget expectations, resulting in an operating balance of $197 million. The entire amount has been appropriated for debt service over the next two years and in part will allow additional operating appropriations. The income tax yield was better than estimated, while the sales tax was on track. The budget for the coming biennium is in balance and economic assumptions underlying revenue estimates appear reasonable. A surplus of about $40 million is expected at June 30, 1994.
 While no real signs of economic recovery are present, the rate of employment loss appears to have stabilized. The state expects that the job loss will continue and that personal income will grow slowly.
 -0- 10/6/93
 /CONTACT: Claire G. Cohen of Fitch Financial Wire, 212-908-0552/


CO: ST: Connecticut, New York IN: SU: RTG

LD -- NY093 -- 9541 10/06/93 18:26 EDT
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Publication:PR Newswire
Date:Oct 6, 1993
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