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MASSACHUSETTS BAY TRANSPORTATION AUTHORITY'S $180 MILLION NOTES RATED 'F-1' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Sept. 17 /PRNewswire/ -- Massachusetts Bay Transportation Authority's (MBTA) $180 million 1993 series B notes are rated "F-1" by Fitch. Dated Oct. 1, 1993, and due Sept. 30, 1994, the notes will be offered for competitive bids on Sept. 22. Proceeds will be used to finance current operating expenses of the MBTA relating to calendar 1993's net cost of service, prior to receipt of such funds from the commonwealth.
 Security for the MBTA's debt rests directly on Massachusetts, which has a statutory general obligation requirement to provide funds at any time to meet any needed MBTA debt service payment. All MBTA obligations thus represent a general obligation payment requirement of the commonwealth and unpaid debtholders' rights represent a claim enforceable against the commonwealth. The retrospective funding structure for the MBTA requires the MBTA's incurrence of operating loans before permanent funding is included in the commonwealth's subsequent year's operating budget. Market access for the frequency of required short-term borrowings is enhanced by the commonwealth's improved financial condition.
 The MBTA is the provider of the bulk of the commonwealth's mass transit service, servicing some two-thirds of its population. The commonwealth has long evidenced financial support and commitment to the MBTA's debt obligations and operations, even through the worst of its financially constrained periods. Appropriated operating subsidies, including non-statutory contact assistance requiring legislative approval, has enlarged steadily.
 -0- 9/17/93
 /CONTACT: Ruth Corson Maynard, 212-908-0596, or Claire G. Cohen, 212-908-0552, both of Fitch/


CO: Massachusetts Bay Transportation Authority ST: Massachusetts IN: TRN SU: RTG

TW -- NY038 -- 3206 09/17/93 16:13 EDT
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Publication:PR Newswire
Date:Sep 17, 1993
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