Printer Friendly

PORT AUTHORITY OF NY & NJ'S $100 MILLION VSOS RATED 'A+/F-1+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Aug. 2 /PRNewswire/ -- The Port Authority of New York and New Jersey's $100 million Versatile Structure Obligations (VSOs), Series 1, are rated 'A+/F-1+' by Fitch. The credit trend is stable. The bonds are expected to be purchased and remarketed by Goldman Sachs on or about Aug. 11.
 The short-term 'F-1+' rating is based on the liquidity facility as provided through a standby certificate purchase agreement (in three equal parts) with The Sumitomo Bank, Ltd., The Bank of Tokyo, Ltd., and The Sanwa Bank, Ltd., as well as the Port Authority's strong cash flow and ample reserves. The long-term 'A+' rating is based on the Port Authority's continuing capability to balance its capital and operating needs with its available resources -- especially as demonstrated throughout the current recession in the region -- as well as the VSOs' subordinate claim on net revenues after the authority's consolidated bonds.
 These series 1 bonds are the first issuance under the Versatile Structure Obligation Resolution authorized by the Port Authority's board on June 11, 1992. Proceeds will be used to finance improvements to Port Authority facilities. The VSOs are secured by a second lien on net revenues of the authority, after payment of debt service on all outstanding consolidated bonds, and after any payment made to the general reserve fund to maintain its required level. The VSOs are further secured by the consolidated bond reserve fund; however they have no claim on the general reserve fund. Other security features include a 1.15x additional bonds test covenant and the Port Authority's policy of limiting its issuance of variable rate securities to 20 percent of all its outstanding debt.
 -0- 8/2/93
 /CONTACT: Andrea R. Bozzo of Fitch, 212-908-0515/


CO: Port Authority of New York and New Jersey ST: New York, New Jersey IN: SU: RTG

LD -- NY117 -- 8550 08/02/93 17:04 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 2, 1993
Words:311
Previous Article:APPLEBEE'S REPORTS 70 PERCENT INCREASE IN NET EARNINGS FOR SECOND QUARTER OF 1993
Next Article:AMERICAN STOCK EXCHANGE DAILY REPORT

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters