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PENNSYLVANIA $400 MILLION TANS RATED 'F-1+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Oct. 6 /PRNewswire/ -- Pennsylvania's $400 million Tax Anticipation Notes, First Series of 1993-1994, for bids on Oct. 13 are rated 'F-1+' by Fitch. The notes will be dated as of the date of delivery and will be due June 30, 1994, with stated set-aside dates during May and June. The notes are not general obligations but are secured by current revenues levied and assessed for current purposes accruing to general funds during the current fiscal year; the amount necessary for principal and interest is specifically appropriated.
 Cash projections indicate a much larger margin of note security this year than in recent years. Operations in 1992-93 were favorable, because of revenues slightly above estimates, cost control and receipt of unbudgeted federal funds. The closing cash balance of almost $1.1 billion at June 30, 1993, substantially bolsters cash flow for 1993-94.
 Cash operations in general are expected to be smoother this year, with smaller monthly deficits and note principal, estimated at a need of $600 million for the full year, is considerably reduced from last year's $975 million. The commonwealth intends to borrow an additional $200 million around the first of the year. The total $600 million represents only 4 percent of revenues, 2 percent of cash flow and 20 percent of the amount legally allowed for operating purposes. Projections indicate that the closing cash balance at June 30, 1994, will be $855.6 million, which provides a safety margin of 3.3 percent. Revenues in May and June together with the estimated opening May balance would provide coverage of 10 times for note principal. Revenues for the first two months of the fiscal year are about 1.2 percent over estimates.
 -0- 10/6/93
 /CONTACT: Claire G. Cohen of Fitch, 212-908-0552/


CO: ST: Pennsylvania IN: SU: RTG

TM -- NY088 -- 9522 10/06/93 17:50 EDT
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Publication:PR Newswire
Date:Oct 6, 1993
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