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PENNSYLVANIA $242 MILLION GENERAL OBLIGATION BONDS RATED 'AA-' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Aug. 11 /PRNewswire/ -- Pennsylvania's $242 million General Obligation Bonds, Third Series of 1993, are rated 'AA-' by Fitch. The 'AA-' rating assigned to $5.0 billion outstanding 'AA-' general obligations is affirmed and the credit trend remains stable. The new bonds, to be offered for bids on August 18, will be due September 1, 1994-2013 and are callable beginning September 1, 2003 at 101.5 percent. Proceeds will be used $98 million for capital facilities, $84 million for Pennvest loans, $2 million for land and water development, $3 million for volunteer companies loans, $25 million for criminal justice facilities, $25 million for agricultural conservation easement purchase, and $5 million for economic revitalization. Commercial paper, issued for bond anticipation purposes and outstanding in the amount of $39 million, will be funded from proceeds.
 Pennsylvania's credit position is buttressed by maintenance of debt at a level that does not overburden the state's fully adequate resources. Net tax-supported debt of $6.4 billion is equal to $540 per capita and to 2.6 percent of personal income.
 Financial operations in 1992-93 surpassed expectations, with revenues slightly higher than estimated and about 2 percent of appropriations were lapsed. As a result, the general fund closed with a balance of $218 million after making a deposit of $24.2 million to the reserve. Most of the surplus is budgeted for 1993-94 operations.
 Recovery from the recession begins to be evident but signals are mixed. Since the peak in 1990, employment is down about 2 percent but growth has been achieved in recent months. However, the unemployment rate has fluctuated and was 7.3 percent in July, compared with 6.8 percent for the U.S. Personal income in 1992 rose more rapidly than in the nation and on a per capita basis continues to exceed the national figure.
 -0- 8/11/93
 /CONTACT: Claire G. Cohen of Fitch, 212-908-0552/


CO: ST: Pennsylvania IN: SU: RTG

LD -- NY099 -- 1873 08/11/93 17:06 EDT
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Publication:PR Newswire
Date:Aug 11, 1993
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