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L.A. UNIFIED SCHOOL DISTRICT 1993 REFUNDING COPs RATED 'A' BY FITCH, OUTSTANDING COPs LOWERED -- FITCH FINANCIAL WIRE --

 NEW YORK, Nov. 23 /PRNewswire/ -- Los Angeles Unified School District, Calif.'s 1993 Refunding Certificates of Participation (Multiple Properties Project) are rated 'A' by Fitch. The rating reflects the district's underlying credit quality; the certificates will be insured by Financial Security Assurance Inc. (FSA). Fitch does not rate the claims-paying ability of FSA.
 In addition, the district's COPs (Capital Facilities Project) 1990A, COPs (Capital Facilities Project) 1991A, and Refunding COPs (Dr. Francisco Bravo Medical Magnet Senior High School) are lowered to 'A' from 'A+'. The new COPs will be offered competitively Nov. 30. The credit trend for all district COPs is stable.
 The downgrade reflects the district's limited financial flexibility, as a result of lower state assistance, overall economic weakness, and growing expenditure needs. While the district has closed sizable projected budget gaps recently, future financial pressures will continue.
 The district's tax base is large and diverse despite current economic weakness. The district operates the second-largest school system in the U.S., serving the entire City of Los Angeles and all or major parts of 14 other cities in the western portion of Los Angeles County. The district's role as a community education center, as well as a kindergarten through high school provider, also contributes to the size of its operations and capital facilities. This broad role will continue as programs such as magnet schools, adult education, job skills training, and day care meet with success and needs expand with growth.
 Financial operations have been adequate to date. Conservative budgeting has resulted in positive year-end general fund balances, including an unaudited $105 million for fiscal 1993, 3.5% of the year's expenditures. Recent favorable operations have been primarily the result of layoffs, sizable salary reductions, and other spending controls. The outlook for revenue growth in the near future is minimal, limiting the district's financial options in dealing with significant capital needs and upcoming contract negotiations with teachers and other staff.
 The district's has issued certificates of participation infrequently, and debt levels are very low.
 -0- 11/23/93
 /CONTACT: Amy S. Doppelt, 212-908-0514 or David C. Pink, 212-908-0678, both of Fitch/


CO: Los Angeles Unified School District ST: California IN: SU: RTG

WB -- NY083 -- 7458 11/23/93 18:16 EST
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Date:Nov 23, 1993
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