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PHILADELPHIA MUNICIPAL AUTHORITY $71 MILLION LEASE REVENUE REFUNDING BONDS 'BB' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Nov. 1 /PRNewswire/ -- The Philadelphia Municipal Authority's approximately $71.2 million lease revenue refunding bonds, 1993 series D, are rated 'BB' by Fitch. The bonds are to be offered through negotiation on or about Nov. 9 with a syndicate led by Kidder, Peabody & Co. Inc. The city's outstanding 'BB' general obligation debt is affirmed. The credit trend is stable.
 The authority's bonds are secured solely from the lease rental payments made by the City of Philadelphia for use and occupancy of the Northeast Detention Facility, a 650-bed unit. Therefore, the credit of the authority's bonds is provided by the city.
 The city covenants to include the lease payments in its annual operating budget. The obligation to pay rent is absolute and unconditional, without right of abatement or setoff. The city has demonstrated its ability to institute realistic actions to meet the five-year financial plans required by the Pennsylvania Intergovernmental Cooperation Authority (PICA). It also has shown its ability to make midyear budgetary adjustments when variances are identified and it closed fiscal 1993 with a small unaudited fund balance. The long-term success of the city's financial planning now depends on its ability to institutionalize both the management reforms won under its labor contracts as well as other operational changes, and the performance of the local economy. Debt levels remain high.
 -0- 11/1/93
 /CONTACT: Richard Raphael of Fitch, 212-908-0500/


CO: ST: Pennsylvania IN: SU: RTG

LD -- NY093 -- 9374 11/01/93 17:57 EST
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Publication:PR Newswire
Date:Nov 1, 1993
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