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MOODY'S UPGRADES SAN FRANCISCO SEWER REVENUE BONDS RATING TO 'A1'; CITES WELL-MANAGED MULTIPHASE CONSTRUCTION PROGRAM AND STRONG ECONOMIC BASE

MOODY'S UPGRADES SAN FRANCISCO SEWER REVENUE BONDS RATING TO 'A1'; CITES WELL-MANAGED MULTIPHASE CONSTRUCTION PROGRAM AND STRONG ECONOMIC BASE
 NEW YORK, Aug. 14 /PRNewswire/ -- Effective yesterday, Moody's Investors Service revised the San Francisco sewer revenue bonds rating to "A1" from "A" in conjunction with San Francisco's $321,155,000 sewer revenue bonds expected to be sold competitively on Aug. 19. The bonds will refund the senior lien bonds and a portion of the junior lien bonds outstanding. The restructuring and refunding of the debt is expected to provide substantial debt service savings.
 The upgrade reflects the system's strong, stable and affluent customer base which includes San Francisco and neighboring areas. San Francisco remains the economic focus of the 10-county Bay Area. Management's strong and demonstrated capability of maintaining a multiphase construction program on time and on budget to meet federal and state compliance contributes to financial strength, performance and flexibility. Moreover, timely rate increases have provided more than adequate debt service coverage. Furthermore, with the substantial debt service savings, rate increases are expected to be moderate compared with earlier projected substantial rate increases
 The bonds will be used to refund all of the senior lien bonds outstanding, the sewer revenue bonds Series A dated Feb. 1, 1978, the Series B dated Feb. 1, 1981, the Series C Dated Oct. 1, 1984, and the sewer revenue refunding bonds Series 1986 dated April 15, 1986. The senior lien bonds will be legally defeased with the refunding. In addition, certain junior lien bonds will also be refunded including the Series 1988 A dated March 1, 1988, and the Series 1988 B dated Feb. 1, 1989. The substantial debt service savings will be used to create a rate stabilization fund to moderate rate increases and to finance a working capital fund to enhance debt service coverage.
 Junior lien outstanding, including the current sale: $491,155,000.
 -0- 8/14/92
 /CONTACT: Diane R. Gatewood of Moody's, 212-553-0849/ CO: San Francisco ST: California IN: SU: RTG


CK-TS -- NY024 -- 0050 08/14/92 13:22 EDT
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Publication:PR Newswire
Date:Aug 14, 1992
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