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CONNECTICUT $357.5 MILLION TRANSPORTATION BONDS RATED 'AA-' BY FITCH -- FITCH FINANCIAL WIRE --

CONNECTICUT $357.5 MILLION TRANSPORTATION BONDS RATED 'AA-' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Aug. 21 /PRNewswire/ -- Connecticut's $357.5 million Special Tax Obligation Bonds, Transportation Infrastructure Purposes, including $275 million 1992 Series B and $82.5 million Refunding 1992 Series C, are rated 'AA-' by Fitch. The bonds are expected to be sold during the week of Aug. 24 through a syndicate led by Bear Stearns & Co. Inc. The Series B will be serials, due on Sept. 1, 1993-2012, but details are still to be set on the refunding Series C portion; call provisions on both are yet to be determined.
 The transportation infrastructure bonds are not general obligations of the state but are payable from pledged revenues derived from highway- related taxes and fees. Pledged revenues provide amply for debt service on the special tax bonds, which have been issued for a well planned and monitored long-term transportation program.
 The trend of underlying growth in pledged revenues in the past three years has reflected the recessionary conditions in the state and, absent rate increases, has been negative or flat. The motor fuels tax was increased by four cents, in staggered implementation, during 1991-92 and annual increase of two cents will occur in each of the next four years. At the same time, costs of the Department of Motor Vehicles have been added to the special transportation fund, offset by new fees.
 Pledged revenues in 1991-92 covered transportation infrastructure debt requirements by 3.1 times. When debt service on general obligation transportation bonds is included, coverage drops to 2.3 times, and will remain at about that level annually through 1997. The credit trend, accordingly, remains stable.
 -0- 8/21/92
 /CONTACT: Claire G. Cohen of Fitch, 212-908-0552/ CO: State of Connecticut ST: Connecticut IN: TRN SU: RTG


KD -- NY064 -- 2280 08/21/92 16:45 EDT
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Publication:PR Newswire
Date:Aug 21, 1992
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