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CONNECTICUT UNEMPLOYMENT COMPANY REVENUE BONDS 1993 B 'AA/F-1+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Aug. 25 /PRNewswire/ -- Connecticut's $235 million special assessment unemployment compensation advance fund revenue bonds, 1993 series B are rated `AA/F-1+'. The rating is based on the 100 percent credit support provided by an irrevocable direct pay letter of credit (LOC) from The Mitsubishi Bank, Ltd. and The Industrial Bank of Japan, Ltd. The underlying security is on parity with the state's unemployment compensation fund program bonds 1993 series A, rated `A+' by Fitch.
 The bonds will bear interest in one of five modes: daily, weekly, semiannually, medium term, and fixed. The LOC covers the variable modes, but will terminate five days after conversion to the fixed mode. There will be a mandatory tender on that conversion date and all bonds will be paid in full then remarketed without the benefit of the LOC.
 The LOC is an irrevocable obligation of the banks to pay scheduled principal and interest, optional and mandatory tenders, mandatory redemptions, and the mandatory tender after an event of default. The letter of credit is available for direct payments to the tender agent. The amount available will cover all principal and 65 days of interest. If the bonds are in semiannual or medium-term mode, the interest coverage will be increased to cover 210 days. The letter of credit is set to expire Sept. 9, 1994 and is renewable thereafter.
 -0- 8/25/93
 /CONTACT: David R. Howard of Fitch, 212-908-0677/


CO: ST: Connecticut IN: SU: RTG

MP -- NY068 -- 5868 08/25/93 16:38 EDT
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Publication:PR Newswire
Date:Aug 25, 1993
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