Printer Friendly

HOUSTON VARIABLE RATE DEMAND DEBT RATED 'AA/F1+' BY FITCH -- FITCH FINANCIAL WIRE --

 HOUSTON VARIABLE RATE DEMAND DEBT RATED 'AA/F1+' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, May 28 /PRNewswire/ -- Houston's $53 million Variable Rate Demand Public Improvement Bonds Series 1992A and $15.6 million Variable Rate Demand Certificates of Obligation Series 1992B are rated 'AA/F1+' by Fitch. The bonds will mature, subject to prior mandatory redemption, on April 1, 2013. The certificates will mature, subject to prior mandatory redemption, on April 1, 1998. Both debt obligations will bear interest initially at a weekly rate but can be converted to or from a daily, weekly, monthly, quarterly, semi-annual, median term to a fixed interest rate. The bonds and certificates are subject to optional redemption.
 Since Houston's oil recession, economic growth had been strong but the latter stages of the current national recession have had some impact. This has worsened a revenue/expenditure imbalance that has existed since the city began drawing down a once large fund balance in fiscal 1990. The imbalance is exacerbated by the budgeting of one-time accruals for the 1992 fiscal year which ends June 30. While a small ending unreserved fund balance of about 1.5 percent is estimated for this fiscal year, a sizable budget gap is projected for fiscal 1993. The 1993 proposed budget will be assessed to the extent it achieves structural balance. A preliminary plan includes, among other measures, multi-year savings from the restructuring of debt, which will reduce extremely rapid debt amortization to an average rate and will not extend beyond the city's existing final maturities of twenty years. Economic prospects are favorable, and growth should resume as a national economic recovery takes hold.
 Strong liquidity for bondholder puts is provided under the standby purchase agreement with Morgan Guaranty Trust Co. of New York. The agreement and the city's ordinance specify the necessary schedules and notices to provide for timely remarketing and bank bond purchases.
 -0- 5/28/92
 /CONTACT: Richard Raphael, 212-908-0506, or Stewart Simon, 212-908-0508, both of Fitch/ CO: ST: Texas IN: SU: RTG


SM -- NY092 -- 4965 05/28/92 17:21 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 28, 1992
Words:343
Previous Article:ENSERCH REPORTS FIRST-QUARTER RESULTS
Next Article:STANDARD & POOR'S STOCK PRICE INDEX -- CLOSING, WEDNESDAY, APRIL 29


Related Articles
HOUSTON (TX) VARIABLE RATE DEMAND GO BONDS RATED 'AA/F-1+' BY FITCH -- FITCH FINANCIAL WIRE (FFW)--
Norwest Bank, Wells Fargo Bank Units Rated AA+ by Fitch IBCA Fitch IBCA.
Rts Utah Hsg 2000 Ser E Cls I Var Rate Bnds 'AAA/F1+'.
Fitch Rts UT Hsg 2000 Ser F Cl I Var Rate Bonds `AAA/F1+'.
Fitch Rates Utah Hsg Corp $19MM 2002B Class I Var-Rate Bonds 'AAA/F1+'.
Fitch Rates Utah Housing's $17.1MM 2003 Series B Class I V-R Bonds 'AAA/F1+'.
Fitch Rates Utah Housing's $13MM 2003 Series C Class I V-R Bonds 'AAA/F1+'.
Fitch Rates Utah Hsg Corp $10MM 2003 Series F Class I VRBOs 'AAA/F1+'.
Fitch Rates Utah Hsg Corp $10MM 2003 Ser G Class I VRDOs 'AAA/F1+'.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters