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PENNSYLVANIA'S $375 MIL. TANS RATED 'F-1+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Dec. 29 /PRNewswire/ -- The Commonwealth of Pennsylvania's $375 million tax anticipation notes, second series 1992-93, are rated F-1+' by Fitch. The notes will be dated Jan. 14, 1993 and due June 30, 1993, without option to call. Together with $600 million outstanding notes sold in September, and also due June 30, 1993, this sale completes the total planned operating cash borrowing for the current fiscal year.
 The notes are not general obligations but are secured by and payable from current revenues levied and assessed for current purposes accruing to the general fund during the current fiscal year. The amount necessary for principal and interest is specifically appropriated, and scheduled set-asides begin in May.
 The cash projections for 1992-93 indicate a slightly smaller margin of note security than was true last year, reflecting a no-growth budget following a year in which taxes were raised to provide for the elimination of the $453 million 1990-91 deficit and to provide balanced 1991-92 operations. When economic recovery did not materialize as projected, revenue estimates were lowered and spending cuts implemented, including lapses, which resulted in a small budgetary surplus at year end. Pennsylvania's record of cash management under unexpectedly difficult conditions is an important part of the superior rating.
 The notes being offered, together with a prior $600 million note issue sold in September, are equal to about 6.7 percent of the year's estimated revenues; this is about one-third of the legally authorized level. The budget for 1992-93 is in balance, with little leeway, as the closing surplus is expected to be only $800,000. Supplemental appropriations of $149 million, if approved, would be offset by appropriation lapses and use of the large reserve for refunds due to reductions in estimated refunds payable.
 Cash flow projections indicate that there will be a balance at June 30, 1993 of $366 million, after full provision for the notes. This about is equal to 1.5 percent of total cash receipts, a modest margin but in line with the prior year's 2 percent level. Achievement of the 1992-93 financial plan is likely to rest on the timing of Pennsylvania's recovery from the recession as well as on the state's ability to continue to keep expenditures within appropriated amounts.
 -0- 12/29/92
 /CONTACT: Claire G.Cohen, 212-908-0552, or Ruth Corson Maynard, 212-908-0596, both of Fitch/


CO: ST: Pennsylvania IN: SU: RTG

TM -- NY036 -- 0420 12/29/92 16:51 EST
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Date:Dec 29, 1992
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