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FLORIDA $300 MIL. GO BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, June 28 /PRNewswire/ -- Florida's $300 million Full Faith and Credit, State Board of Education, Public Education Capital Outlay Bonds, 1993 Series C, are rated AA by Fitch. The `AA' rating assigned to $5.7 billion outstanding faith and credit bonds is affirmed. The credit trend remains stable. The new bonds, being offered on June 29, will be due June 1, 1994-2023, with maturities in 2009-2023 subject to designation as term bonds with mandatory redemption, at bidder's option. They will be callable beginning June 1, 2003, at 101 percent.
 Nearly all of Florida's faith and credit bonds are secured by specific revenues. The public education capital outlay bonds are secured by a lien on the gross receipts tax; collections of the tax provide about 1.34 times coverage for debt service on the $4.0 billion bonds issued for the purpose.
 Florida's credit assessment takes into account the specific tax dedications for each type of debt as well as the full faith and credit of the state. The state's profile may be characterized by rapid growth, economic broadening and diversification. Services and trade have developed extensively, supplementing and modifying the traditional agriculture-tourism base. While this has smoothed recessionary effects, growth has dropped sharply in the past few years, led by the construction industry, and complicated by Hurricane Andrew in 1992.
 Financial operations have been under some pressure from the adverse economy, but expenditure reductions as well as some revenue measures allowed the state to retain a fiscal 1992 balance of about $184 million, higher than earlier anticipated. Revenues this year are at about the estimated level and a balance of $429 million is expected at June 30, 1993. Operations in 1993-94 will reduce reserves to about $266 million at year end. The budget, with no major tax changes, has been adopted.
 Employment has again begun to grow and the state's unemployment rate has been fluctuating around the national level. Personal income lagged the national gain in 1992, partly reflecting Hurricane Andrew, but fourth quarter 1992 results were more favorable. A sizeable increase in construction jobs as well as the trend of sales tax receipts indicate rebuilding efforts from hurricane destruction are underway.
 -0- 6/28/93
 /CONTACT: Claire G. Cohen of Fitch, 212-908-0552/


CO: State of Florida ST: Florida IN: SU: RTG

MP -- NY071 -- 6393 06/28/93 16:07 EDT
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Publication:PR Newswire
Date:Jun 28, 1993
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