Printer Friendly

TEXAS GENERAL OBLIGATION BONDS RATED 'AA +' BY FITCH -- FITCH FINANCIAL WIRE --

 TEXAS GENERAL OBLIGATION BONDS RATED 'AA +' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Oct. 26 /PRNewswire/ -- General obligation bonds of the State of Texas have received a rating of 'AA+' from Fitch Investors Service. The credit trend is stable. The action was taken in conjunction with the planned issuance of approximately $250 million general obligation refunding bonds (Superconducting Super Collider Project) series 1992C, to be issued by the Texas Public Finance Authority through a syndicate led by Smith Barney, Harris Upham & Co., Inc. within the next few weeks.
 The bonds, which represent part of the funding for the super- conducting super collider project, will include current interest and capital appreciation bonds, due April 1, 1993-2011. The capital appreciation bonds are not optionally callable. Call features on the current interest bonds are yet to be determined. The Texas Public Finance Authority is authorized to issue certain general obligations of the State of Texas. The bonds being refunded, also state G.O.'s, were issued by the Texas National Research Laboratory Commission; The Authority as of Jan. 1, 1992, became the issuer of bonds on behalf of the commission.
 The size and diversity of the state's economy, which currently is outperforming both the nation and most other states, combined with a low debt burden and balanced financial operations, provide excellent bondholder security.
 Texas is the third largest of the states in terms of population and its economy, historically dependent on petroleum and agriculture, has become broader and more diversified. A solid recovery followed the severe oil-induced recession of the early and mid 1980's and both employment and personal income continue to show growth. Assumptions for moderate advances in the near term are well related to present experience.
 Nearly half of the state's gross debt is self supporting from program revenues, resulting in low debt ratios. Net tax supported debt of $2.1 billion is equal to $122 per capita and 0.7 percent of personal income.
 Texas has had balanced operations generally, with the exception of the depth of the mid 1980's recession period. Cash balances are sizable. The revenue system is, however, heavily dependent on one source, the sales tax, which provides over half of tax revenues. The state budget has expanded recently in recognition of social needs resulting from the increasing size and urbanization of the population. One major problem remains to be fully resolved as recent plans for school financing have been unacceptable.
 -0- 10/26/92
 /CONTACT: Claire G. Cohen of Fitch, 212-908-0552/ CO: ST: Texas IN: SU: RTG


KD -- NY103 -- 5002 10/26/92 16:13 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 26, 1992
Words:430
Previous Article:IMPROVING MICHIGAN ECONOMY SIGNALS DROP IN FEDERAL JOBLESS BENEFITS
Next Article:QUAKER STATE CHANGES ITS BOTTLES FROM WHITE TO GREEN


Related Articles
SAN ANTONIO (TEXAS) GENERAL OBLIGATION DEBT RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
FLORIDA'S $250 MILLION GENERAL OBLIGATION BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
FORT WORTH, TEXAS, $123 MILLION REFUNDING BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
WASHINGTON $50 MILLION GO BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
SAN ANTONIO, TEXAS' REFUNDED BONDS RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
HOUSTON (TX) VARIABLE RATE DEMAND GO BONDS RATED 'AA/F-1+' BY FITCH -- FITCH FINANCIAL WIRE (FFW)--
OREGON $42.0 MILLION GENERAL OBLIGATION BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
CALIFORNIA $1.3 BILLION GO BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
OREGON $12.5 MIL. GO BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
CALIFORNIA'S $400 MILLION G.O. BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --

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