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CONNECTICUT $465 MILLION GO BONDS RATED 'AA+' BY FITCH -- FITCH FINANCIAL WIRE --

 CONNECTICUT $465 MILLION GO BONDS RATED 'AA+' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, March 6 /PRNewswire/ -- Connecticut's $465 million General Obligation Bonds (1992 Series A), scheduled for negotiated sale through a syndicate led by Merrill Lynch & Co. during the week of March 9, are rated 'AA+' by Fitch. The new bonds will mature on March 15, 1993-2012 in amounts still to be determined; they will be callable but details are not yet decided. Of the total being sold, $330.2 million will refinance a like amount of bond anticipation notes coming due in April.
 Credit prospects continue to be based on Connecticut's wealth and economic resources and, in addition, on the restructuring in process. Last year, the revenue system was modified and stabilized through the introduction of a personal income tax and the lowering of the sales tax rate, lessening the dependence on sales and corporate taxes, which tend to be volatile. This year the budget recommendations focus on re- direction and control of expenditures with implications of future cost savings as well as those in the 1993 fiscal year.
 Connecticut now expects to close the 1992 fiscal year with a nominal surplus. While revenues were adjusted downward in November, additional Medicaid payments will more than offset the revenue loss. The income tax is performing at about expected levels and the sales tax is a little better than estimated. The proposed budget for 1992-93 keeps spending at about this year's level and it is precisely balanced.
 Debt of the state is now high, but remains manageable. Net tax- supported debt is $7.3 billion, or $2,207 per capita and 8.7 percent of personal income. The need to borrow nearly $1 billion to finance the accumulated deficit is a major part of the debt level.
 -0- 3/6/92
 /CONTACT: Claire G. Cohen of Fitch, 212-908-0552/ CO: ST: Connecticut IN: SU: RTG


KD -- NY057 -- 6014 03/06/92 16:47 EST
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Publication:PR Newswire
Date:Mar 6, 1992
Words:323
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