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NYC MUN. ASSIST. CORP. (MAC) BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, March 1 /PRNewswire/ -- The Municipal Assistance Corp. (MAC) for the City of New York's $133.5 million (approximately) Series C Bonds (1991 General Bond Resolution) are rated AA' by Fitch. The bonds will be sold through negotiation by a syndicate led by Goldman, Sachs & Co. tomorrow. The AA' ratings on outstanding Series A parity bonds and $4.96 billion in outstanding second resolution bonds are affirmed. The F-1+' rating on Series B (General Resolution) bonds also is affirmed. The credit trend for all corporation debt is stable.
 This issue is the third under a resolution created after state legislation resurrected MAC's new issuance capacity in 1990. While this and the two prior issues were refundings, MAC is able to re-emerge as a borrower for New York City. New borrowing is limited to $1.5 billion, a constraint reflected in the high quality rating. General resolution bonds are secured by the same pledged revenue as second resolution debt, but on a subordinate basis. Although per capita aid and the stock transfer taxes have been available for debt service, they have never been used for this purpose, making MAC debt, analytically, sales tax bonds. Coverage of both lien's debt service by fiscal 1992 net sales tax revenue alone is strong at 2.96 times(x). Sales tax collections have shown recessionary weakness, although recent results indicate improvement. Revenue for the first two quarters of fiscal 1993 are 5.1 percent ahead of the same period in fiscal 1992, following two years of declines. The general resolution debt has a 2.0x additional bonds test based on sales tax revenue alone, after deducting debt service on second resolution bonds.
 Proceeds from this issue will be used to refund all $123.75 million Series 56 (second resolution) bonds outstanding. Series 56 bonds maturing in 1994 and 1995 will be paid in full at maturity, while bonds due on or after July 1, 1996 will be redeemed on that date at 102 percent. Substantial present value debt service savings are expected.
 -0- 3/1/93
 /CONTACT: Amy S. Doppelt of Fitch, 212-908-0514/


CO: Municipal Assistance Corp. ST: New York IN: FIN SU: RTG

TM -- NY107 -- 1648 03/01/93 17:44 EST
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Date:Mar 1, 1993
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