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CONNECTICUT $375 MILLION GENERAL OBLIGATION BONDS RATED 'AA+' BY FITCH -- FITCH FINANCIAL WIRE --

CONNECTICUT $375 MILLION GENERAL OBLIGATION BONDS RATED 'AA+' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, April 7 /PRNewswire/ -- Connecticut's $375 million general obligation bonds to be sold this month are rated 'AA+' by Fitch. The 'AA+' rating assigned to $5.1 billion outstanding bonds is affirmed. The credit trend remains stable. The new issue includes $50 million capital appreciation bonds (college savings plan, 1992 Series A), non- callable, due May 15, 1997-2012 in amounts to be determined, which are expected by negotiation on April 9 through a syndicate led by Merrill Lynch & Co., and $325 million current interest bonds (1992 Series B), due May 15, 1993-2005, which are expected on April 20 through a syndicate led by Smith Barney, Harris Upham & Co.; they will be callable but terms are not yet set. The current interest bonds will include about $300 million for refunding purposes.
 Connecticut's credit prospects continue to be based on the state's wealth and economic resources as well as on the restructuring in process. Last year, the revenue system was modified by the introduction of a personal income tax and the beginning of lower corporate taxation. This year, the budget recommendations, which are still under legislative consideration, focus on re-direction and control of expenditures. Debt is high, partly due to nearly $1 billion of deficit financing last year, but remains manageable. Future evaluations will continue to concentrate on the state's ability to maintain financial stability as well as on the pattern of eventual recovery.
 The recession continues to be evident in Connecticut, with employment in December 1991 still about 3 percent below the 1990 level, although essentially unchanged from the November level. The state's January unemployment rate of 7.5 percent exceeded the national 7.1 percent rate. Tax collections appear to be stabilizing, with only minor adjustments made to estimates in recent months. Through February, the sales tax was about 5 percent ahead of expectations and the income tax is reported to be on target. A nominal balance is still expected for this fiscal year, which ends June 30.
 -0- 4/7/92
 /CONTACT: Claire G. Cohen of Fitch, 212-908-0552/ CO: ST: Connecticut IN: SU: RTG


AH -- NY056 -- 5955 04/07/92 16:44 EDT
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Publication:PR Newswire
Date:Apr 7, 1992
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