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NEW YORK STATE $2.3 BILLION TRANS RATED 'F-1+' BY FITCH --FITCH FINANCIAL WIRE (FFW)--

 NEW YORK STATE $2.3 BILLION TRANS RATED 'F-1+' BY FITCH
 --FITCH FINANCIAL WIRE (FFW)--
 NEW YORK April 20 /PRNewswire/ -- The state of New York's $2.3 billion 1992 Tax and Revenue Anticipation Notes (TRANs) are rated 'F-1+' by Fitch. This is the first time that the state has requested a Fitch rating on this type of obligation. The notes will be dated April 28, 1992, and will mature $300 million on Sept. 30, 1992, $550 million on Dec. 31, 1992, and $1.45 billion on March 31, 1993; they are not callable. The notes will be general obligations of the state of New York and the full faith and credit of the state are pledged to their payment. Sale is expected on April 22 through a syndicate led by Bear, Stearns & Co. Inc.
 The TRANs represent New York's annual need for operating borrowing, primarily due to considerably greater disbursements in the first quarter of its fiscal year, which began April 1, than can be supported by receipts in the same period. The amount this year is lower than in the past because the state, through its agency the Local Government Assistance Corp. (LGAC), has begun to fund the deficit which has accumulated through this mis-match practice. The TRANs and the bonds of LGAC cannot together exceed $4.7 billion and annual note issuance will continue to be reduced by the amount of LGAC borrowing.
 Although the notes are general obligations, they are intended to be paid from revenues collected during the fiscal year. The 1992-93 general fund budget has been premised on conservative economic assumptions, with an expectation of low personal income growth and a decline in employment. Revenue growth of about 3 percent appears reasonable and expenditures have been held to this rate as well.
 The use of non-recurring revenue is minor. While the budget reflects reasonably expected conditions, the uncertainty inherent in the course of the economy remains a risk. As a safeguard, the state does have the legal ability to issue one-year deficit notes, as it has in the past. In addition, its access to its own short-term investment pool is a prominent liquidity feature.
 -0- 4/20/92
 /CONTACT: Claire Cohen of Fitch, 212-908-0552/ CO: ST: New York IN: SU: RTG


TQ -- NY083 -- 0232 04/20/92 16:42 EDT
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Publication:PR Newswire
Date:Apr 20, 1992
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