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CONNECTICUT UNEMP. COMP. BONDS TO BE RATED 'AAA/F-1+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Sept. 8 /PRNewswire/ -- Connecticut's $335 million special assessment unemployment compensation advance fund revenue bonds, 1993 series C are expected to be rated "AAA/F-1+" by Fitch. The bonds will be sold through negotiation by a syndicate led by Morgan Stanley & Co. on or about Sept. 14.
 The rating is contingent upon receipt of final documents and legal opinions acceptable to Fitch.
 The expected rating reflects a commitment from FGIC to provide insurance covering scheduled principal and interest payments, and from FGIC Securities Purchase Inc. as the liquidity provider for unremarketed tendered bonds. The underlying security is on par with series A bonds, rated "A+" by Fitch. The credit trend is stable.
 The bonds will be issued in a variable-rate mode, including daily, weekly, semiannual, and medium-term modes, and can be converted to fixed rate at the state's option. The bonds are due Nov. 15, 2001, although the state anticipates redeeming some of the issue prior to this date from surplus assessment revenue. In daily, weekly, semiannual, and certain medium-term modes, the bonds are callable at par on any interest payment date; in medium-term modes greater than 18 months, the bonds are subject to optional redemption annually at various premiums, depending on the mode's length.
 This issue is the last of three to retire the state's outstanding loan from the federal unemployment compensation trust fund. The bonds' underlying credit strength lies in the predictability of the special assessments pledged to debt service, in that they are levied based on historical employment and include a sound coverage factor. The assessment procedure includes a mechanism for an additional assessment midyear if revenue produced falls short of debt service. Bond principal is further secured by the state's requirement to draw from the unemployment compensation fund, if necessary, to make the principal repayments. Federal law prohibits the fund's resources from being used to pay interest. Connecticut's unemployment compensation program benefits from the cost saving issuances, and the significant changes made to restore the program's fiscal balance. However, these changes will result in increased costs to employers in the state.
 -0- 9/8/93
 /CONTACT: Amy S. Doppelt, 212-908-0514 or Claire G. Cohen, 212-908-0552, both of Fitch/


CO: ST: Connecticut IN: SU: RTG

LG -- NY074 -- 9926 09/08/93 15:21 EDT
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Publication:PR Newswire
Date:Sep 8, 1993
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