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MASSACHUSETTS WATER RESOURCES AUTHORITY'S $72 MILLION NOTES RATED 'F-1' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, May 18 /PRNewswire/ -- Massachusetts Water Resources Authority's $72 million bond anticipation notes 1993 series A are rated "F-1" by Fitch. Note proceeds, together with funds of the authority, are expected to be used to repay on June 1, 1993 a note previously issued to the Commonwealth of Massachusetts in the principal amount of $80 million in consideration for costs borne by the commonwealth on behalf of the authority. The notes are general obligations of the authority, with interest payments secured by a subordinate lien on revenues. Principal is not secured under the lien. The notes, which mature Aug. 15, 1996, have no principal payments prior to maturity and are not subject to prior redemption. The 1993 series A notes are scheduled to be priced May 18 by a M.R. Beal & Co. led syndicate.
 The rating reflects the soundness of the authority's legal provisions, federal court oversight of the capital program, and a fundamentally strong service area, anchored by the Boston Water and Sewer Commission. Financial performance remains positive, supported by a history of conservative business practices and funding assumptions. Credit concerns include the need to finance an over $4.8 billion construction program and the political problems associated with such a major undertaking.
 Construction of the authority's massive water and wastewater capital improvement program continues to progress, although delays have been experienced in certain aspects of the Deer Island Harbor Project, resulting from severe winter weather conditions and slower than anticipated development of the 9.5-mile deep-rock effluent outfall tunnel. To address the impact of significant future rate increases caused by the extensive financial program, the authority is looking at deferring certain capital items and seeking greater federal and state assistance. Pending before the Massachusetts legislature are proposals that could provide the authority with debt service assistance to offset a portion of increased rates and charges expected for fiscal years 1994-1997.
 -0- 5/18/93
 /CONTACT: Alan Spen, 212-908-0594, or Rebecca Bachman, 212-908-0516, both of Fitch/


CO: Massachusetts Water Resources Authority ST: Massachusetts IN: UTI SU: RTG

TS -- NY029 -- 9654 05/18/93 10:01 EDT
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Date:May 18, 1993
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