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METROPOLITAN SERVICE DISTRICT, ORE., $23 MILLION BONDS RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 METROPOLITAN SERVICE DISTRICT, ORE., $23 MILLION BONDS
 RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
 NEW YORK, Dec. 3 /PRNewswire/ -- Metropolitan Service District, Ore.'s approximately $23 million general revenue bonds (Metro Headquarters Building Project), 1991 Series A are rated 'A+ ' by Fitch. Sale of the bonds is expected through negotiation Dec. 10 by a syndicate led by PaineWebber Inc. The district's large service area, substantial resource base, and sound finances as well as the bonds' strong security structure, provide the basis for the rating. The credit trend is stable.
 The bonds are issued under the district's revenue bond authority. However, the bonds are payable from all district revenues (unless restricted by law) and other legally available resources, making them in effect limited general obligations of the district. Bondholder protections include the requirement to annually budget debt service coverage, a prohibition against senior lien bonds, and a strong additional bonds test.
 The district serves 1.2 million people in the urban Portland region and is responsible for a broad range of functions including solid waste management, transportation planning, regional planning, and management of various spectator facilities. Created in 1977, the district is the only directly elected regional government in the nation. Most of the $112 million revenue base now includes enterprise revenues, but the district has broad revenue-raising authority. The district's various departments will be assessed annually to provide 1.10 times debt service coverage, based on the square footage occupied in the new headquarters building. Since debt service costs on the bonds will be allocated to each department as an operating expense, such costs would have a claim on resources before payment of revenue bonds from net departmental revenues.
 The district's budgetary levels have quadrupled since 1985 to over $110 million in fiscal 1991-92 because it has continued to assume additional functions. Its financial position is strong with $9.5 million in unreserved governmental funds in fiscal 1989-90. The capital plan includes $155 million to $265 million in new bonds, most to be supported by unlimited property taxes. The Portland region has a growing, diverse economic base with above-average wealth levels.
 -0- 12/3/91
 /CONTACT: Stewart Simon of Fitch, 212-908-0508/ CO: Metropolitan Service District ST: Oregon IN: SU: RTG


JT -- NY088 -- 8904 12/03/91 16:37 EST
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Publication:PR Newswire
Date:Dec 3, 1991
Words:379
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