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LOS ANGELES $200 MILLION WASTEWATER REVENUES RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 LOS ANGELES $200 MILLION WASTEWATER REVENUES RATED 'A+' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Nov. 26 /PRNewswire/ -- Los Angeles, Calif.'s new issue of $200 million wastewater system revenue bonds are rated 'A+' by Fitch, as are the city's approximately $1 billion outstanding wastewater system revenue bonds. The rating reflects strong security provisions, rates which are generally in line with other large wastewater systems, and the expectation that future rate increases will begin to moderate after 1992. The credit trend is stable.
 A major capital improvement program (CIP) is underway to put the sewer system in compliance with federal and state regulations and to upgrade the service of the existing utility. The city's active participation in wastewater system operations has proven to be a positive, as is the development of a CIP classification system that provides management with added flexibility. The regional drought has had no appreciable effect on financial performance.
 Concerns include the fact that completion of the capital program is many years away and, therefore, could be susceptible to changes in regulatory policy. Funding needs are sizable and debt service coverage, while satisfactory, is expected to gradually decline to around 1.35 times by the mid-1990s.
 The bonds will be issued either in one series as $200 million Series 1991-D wastewater system revenue bonds or in two series as $109.5 million Series 1991-D and $90.5 million Series 1991-E wastewater system refunding revenue bonds. They are scheduled to be sold competitively on Dec. 4 and will pay interest June 1 and Dec. 1, commencing June 1, 1992. Bonds maturing on or after Dec. 1, 2001 are subject to optional redemption prior to their stated maturities at 102 percent on Dec. 1, 2000, declining 1 percent per year to par after Dec. 1, 2002. The bonds are subject to mandatory redemption in amounts and at dates as determined.
 -0- 11/26/91
 /CONTACT: Alan Spen, 212-908-0594, or Rebecca Bachman, 212-908-0516, both of Fitch/ CO: City of Los Angeles ST: California IN: SU: RTG


JT -- NY085 -- 7505 11/26/91 17:01 EST
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Publication:PR Newswire
Date:Nov 26, 1991
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