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MAJOR EXPLOSION AT PORT AUTHORITY OF NEW YORK AND NEW JERSEY'S WORLD TRADE CENTER NOT EXPECTED TO IMPACT A1 RATING

 -- Plans for $100 Million Bond Sale on March 3 Unchanged --
 NEW YORK, March 1 /PRNewswire/ -- The World Trade Center bomb explosion is not expected to have a negative impact on the A1 rating of the Port Authority's Consolidated Bonds. On Friday, Feb. 26, a bomb explosion occurred in the underground parking garage of the World Trade Center, forcing the World Trade Center to be evacuated and causing substantial damage. The Port Authority carries about $600 million in insurance, which covers both property damage and loss of business income. Reportedly, the structural integrity of the 110 story twin towers remains intact and the authority hopes that smoke damage and operational aspects of the building can be repaired sufficiently to allow reoccupancy within several weeks, in which case insurance is expected to be sufficient to cover the authority's losses. Nevertheless, if the World Trade Center cannot be reoccupied in a timely fashion, the impact on the Port Authority's financial operations could be significant. The World Trade Center, which is owned by the Port Authority of New York and New Jersey, represents slightly less than a quarter of the Port Authority's total operating revenues. The Port Authority's trans-Hudson PATH train service was restored in time for Monday's rush hour. However, the Port Authority's Vista Hotel in the World Trade Center complex may be closed for an extended period of time and damage around the immediate area of the explosion is severe. In addition, personal injury claims could have negative financial implications is such claims exceed the $400 million in public liability insurance carried by the Port Authority. The longer term implications of this bombing for the attractiveness of the World Trade Center as a desirable business location are unclear at this time.
 Despite the bombing, the Port Authority plans to sell about $100 million in Consolidated Bonds, Series 85 on March 3 to retire short term notes which are due March 15, 1993. The critical nature and diversity of the Port Authority's facilities, combined with historically sound financial performance represent fundamental long-term credit strengths. Coping with the effects of the recession and managing an extensive capital program represents a continuing challenge for management. The Port Authority has $4,037,732,000 in consolidated bonds, net of $404,333,288 in insured issues.
 -0- 3/1/93
 /CONTACT: Dennis E. Porcaro, Jr., senior analyst, 212-553-4165, or Marie S. Pisecki, vice president and supervisor, 212-553-7120, both of Moody's Public Finance Department, for Port Authority of New York and New Jersey/


CO: Port Authority of New York and New Jersey ST: New York, New Jersey IN: SU: RTG

LD-KW -- NY099 -- 1616 03/01/93 16:59 EST
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Publication:PR Newswire
Date:Mar 1, 1993
Words:441
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