Printer Friendly

HOUSTON (TX) $200 MIL. COMMERCIAL PAPER NOTES RATED 'F-1+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Sept. 15 /PRNewswire/ -- Houston, Texas' $200 million general obligation commercial paper notes, series A are rated "F-1+" by Fitch. J.P. Morgan Securities Inc. and Grigsby Brandford & Co. collectively serve as the note dealer and remarketing agent. Liquidity for unremarketed notes is provided by The Toronto-Dominion Bank. BankAmerica National Trust Co. is the issuing and paying agent.
 The highest short-term rating on these commercial paper notes reflects the city of Houston's general obligation pledge ultimately securing the notes, expected continued market access, and strong liquidity provisions.
 The commercial paper notes are on par with the city's other general obligation debt. The city must levy annually sufficient amounts to meet the note requirements. Upon a failed remarketing, the city may request Toronto-Dominion Bank, as liquidity provider, to advance moneys to retire the notes. Upon default, the bank may terminate the agreement. The city plans eventually to refinance the notes with bonds from time to time. The note dealer agrees to hold unremarketed notes for 29 days, unless the city retires them from internal sources or a bank liquidity advance.
 Therefore, the rating also reflects the city's strong credit characteristics. Fitch rates the city's general obligations "AA," with a declining trend. The city has a proven record of market access. A modest general fund operating surplus was registered in fiscal 1993, the first surplus in several years. The 1994 budget is balanced, although budget projections for future years may be vulnerable to imbalance. Some overall economic strengthening is evident this year. After employment fell slightly in 1992, a small overall employment gain was registered in the first half of 1993.
 -0- 9/15/93
 /CONTACT: Stewart Simon, 212-908-0508 or Amy Doppelt, 212-908-0514, both of Fitch/


CO: ST: Texas IN: SU: RTG

LG -- NY074 -- 2332 09/15/93 15:06 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 15, 1993
Words:300
Previous Article:GRUPO FINANCIERO BANCOMER RESTRUCTURES OPERATIONS TO MEET COMPETITIVE CHALLENGES
Next Article:AMEX OFFERS NEW OPPORTUNITY TO PARTICIPATE IN JAPANESE CURRENCY MARKET; LEHMAN BROTHERS HOLDINGS INC. ISSUES 3 MILLION YEN BEAR WARRANTS
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters