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SUFFOLK COUNTY NEW YORK BOND ANTICIPATION NOTES RATED 'F-1' BY FITCH -- FITCH FINANCIAL WIRE --

SUFFOLK COUNTY NEW YORK BOND ANTICIPATION NOTES RATED 'F-1' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK July 27 /PRNewswire/ -- Suffolk County, NY's Bond Anticipation Notes (BANs) are rated 'F-1' by Fitch. The county will offer $6.95 million BANs, 1992 through negotiation with First American Municipals, Inc., this week. The notes will be dated August 6, 1992 and due June 24, 1993.
 Suffolk County's bond anticipation notes are well secured by the county's general obligation pledge and the its established ability to enter the both the long-and short-term markets. Market access has been available to the county on an ongoing basis, despite its now chronic and well publicized financial problems.
 The county has experienced significant budget problems in recent years that have weakened both its financial and cash condition. The county has suffered from the recession, reduced state aid, and a difficult political situation. As a result, operating deficits continue to occur, requiring constant monitoring as well as continuing executive and legislative actions to attempt to maintain balance.
 Over the last few years, the county has adopted a variety of plans and practices which were designed to restore balance. The plans have met with varying levels of success, and imbalances have occurred into the current year. The amount of the imbalance continues to fluctuate as conditions change, but it now appears that the gap, which was originally projected to be as high as $70 million, is now down to less than $10 million. It now appears that the $70 million number was a conservative estimate of the imbalance. The current figure reflects the realization of savings taken virtually across the board as well as better than expected state aid levels and certain one-time changes, such as a reduction in the pension expense from the state and a change in state sales tax collection practices.
 Despite the improvement in this year's position, the cumulative deficit remains and state legislation is being sought to eliminate the past imbalances. The special session will determine whether the county will be allowed to borrow about $35 million in deficit bonds and receive another one-half cent states tax. About 50 percent of the sales tax would be used for debt service payments on the deficit bond. If approved, it now appears that the deficit bonds will bear a very short maturity of within about three years. This aggressive payout is a reflection of the county's strong desire to eliminate the financial problems on a permanent basis. Should the legislation fail to be adopted, it is likely that the county will issue budget notes again to close the 1992 gap.
 -0- 7/27/92
 /CONTACT: Colleen Woodell of Fitch 212-908-0507/ CO: ST: New York IN: SU: RTG


LD -- NY102 -- 3641 07/27/92 16:05 EDT
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Publication:PR Newswire
Date:Jul 27, 1992
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