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MASSACHUSETTS WATER POLL ABATEMENT TRUST BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Dec. 3 /PRNewswire/ -- Massachusetts Water Pollution Abatement Trust's $86.9 million water pollution abatement revenue bonds, series 1993B (Massachusetts Water Resources Authority Loan Program) are rated 'AA' by Fitch. The bonds are scheduled to be sold through negotiation on or about Dec. 14 by a syndicate led by Reinoso & Company Inc. The credit trend is stable.
 These series of revenue bonds are the trust's third issuance for its revolving fund program. Proceeds of this issue will finance projects solely for the Massachusetts Water Resources Authority (MWRA); thus, the repayment obligation lies with MWRA. The primary security for these bonds rests in MWRA's pledge of an equal amount of its trust obligations and attendant reserves. Furthermore, great auxiliary strength is supplied by the substantial reserves (50% outstanding bond principal) and accompanying interest earnings that the trust provides through its equity contributions to the revolving fund program, consisting of federal capitalization grants and 20% required state matching moneys. Contract assistance payments from the commonwealth also are available to meet MWRA's loan repayment obligations.
 MWRA's fundamental credit characteristics remain sound. The authority's conservative financial practices have enabled it to maintain solid fiscal performance despite rapidly escalating fixed costs and upward rate pressure that results from the substantial capital improvement program (CIP). The authority's $4.5 billion CIP to upgrade water and wastewater quality is well under way, with construction of the Deer Island Harbor Treatment Project at the center of the court-mandated program. Progress continues on the program, and federal oversight assures timeliness on most program phases. The service area is fundamentally strong, with a viable long-term economic base. Charges to participating local units are not constrained by Proposition 2-1/2.
 Rates to finance the program will continue to rise, although future increases are expected to be more moderate than in the past. Also, the authority has recently received state funding. The CIP remains substantial, and necessary additional bonding authority requires state legislative approval. Certain components of the construction program, including Deer Island, have fallen somewhat behind schedule but may catch up in the future.
 -0- 12/3/93
 /CONTACT: Stewart Simon, 212-908-0508 or Rebecca Bachman, 212-908-0516, both of Fitch/


CO: Massachusetts Water Pollution Abatement Trust ST: Massachusetts IN: SU: RTG

WB -- NY060 -- 0338 12/03/93 15:50 EST
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Publication:PR Newswire
Date:Dec 3, 1993
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