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MOODY'S ASSIGNS 'Aa' RATING TO INITIAL ISSUANCE OF MASSACHUSETTS WATER POLLUTION ABATEMENT TRUST REVENUE BONDS

 NEW YORK, Feb. 12 /PRNewswire/ -- Effective today, Moody's Investors Service assigned an "Aa" rating to the Massachusetts Water Pollution Abatement Trust (MWRA Loan Program)'s $149,585,000 water pollution abatement revenue bonds, Series 1993 A, expected to sell through negotiation the week of March 2, 1993.
 Fundamental to the high-grade quality rating of this initial issuance by the Trust are the basic credit characteristics of the Massachusetts Water Resources Authority (MWRA) subordinate lien loan repayment pledge supplemented and strengthened by the presence of a substantial debt service reserve fund equal to 50 percent of bonds outstanding. The MWRA loan obligation, which is subordinate to its outstanding general reserve bonds, rated "A," is structured to require annual payments sufficient to fully cover debt service on this issue; however, it is expected that interest income on the reserve fund and annual contract assistance payments pursuant to a full faith and credit pledge of the Commonwealth of Massachusetts will subsidize loan repayments by MWRA. In the event that interest income or payments from the Commonwealth are not available for debt service, MWRA will be required to fully fund annual debt service. The presence of the extraordinary debt service reserve fund, funded from federal capitalization grants and state matching funds, provides comfort that ample margins exist to address any unforeseen event interrupting the Authority's cash flow and therefore ensure timely payment of the Trust's Series 1993 A bonds.
 -0- 2/12/93
 /CONTACT: Joan Dougherty, vice president and manager, 212-553-7737, or Steve Levine, vice president and supervisor, 212-553-4097, both of Moody's Public Finance Department/


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

GK-TM -- NY044 -- 6255 02/12/93 15:45 EST
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Publication:PR Newswire
Date:Feb 12, 1993
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