NEW YORK STATE ENVIRONMENTAL FACILITIES CORP. $40 MILLION BONDS RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --
NEW YORK STATE ENVIRONMENTAL FACILITIES CORP. $40 MILLION BONDS
RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --
NEW YORK, March 3 /PRNewswire/ -- New York State Environmental Facilities Corp.'s (EFC) $40.5 million taxable state service contract revenue bonds, Series 1992 A are rated 'A' by Fitch. The bonds are expected by negotiation through a syndicate let by Goldman, Sachs & Co. on or about March 4. Bond proceeds will be used to reimburse the state for certain amounts advanced as matching contributions to the water pollution control revolving fund. The credit trend is uncertain.
Credit quality of the bonds rests with the general assessment of the state of New York, as contract payments to make bond payments are subject to annual legislative appropriations. As with other appropriation type debt, appropriation risk is minimal given the central role that such financings play in the state's overall debt structure.
New York has substantial resources and its debt continues to represent only a moderate burden. Financial operations have been in deficit since 1989, originally reflecting economic uncertainty and now a recession more severe than previously anticipated. The executive budget for 1992-93 envisions repayment of $531 million expected to be borrowed to close this year's gap. While economic and revenue estimates have been revised downward, the unpredictability of recent years indicates an uncertain credit trend for the state.
Bonds are special obligations of the EFC payable from amounts provided under a service contract between EFC and the state acting through the Commissioner of the Department of Environmental Conservation. State payments are subject to annual legislative appropriation. The debt service reserve requirement equals maximum semi-annual debt service.
/CONTACT: Claire G. Cohen, 212-908-0552, or Stewart Simon, 212-908-0508, both of Fitch/ CO: New York States Environmental Facilities Corp. ST: New York IN: SU: RTG AH -- NY084 -- 4652 03/03/92 16:50 EST