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TEXAS PUBLIC FINANCE AUTHORITY CP RATED 'F-1+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Sept. 17 /PRNewswire/ -- The Texas Public Finance Authority's State of Texas tax-exempt general obligation commercial paper notes are rated "F-1+" by Fitch. The program may have a maximum outstanding amount of $500 million and $253.8 million are expected to be issued during the week of Sept. 20. The notes will be a general obligation of the State of Texas; the authority acts as issuer of certain of the state's general obligation securities. The notes are for capital purposes, primarily corrections, and will ultimately be retired from proceeds of general obligation bonds which have already been approved.
 While the notes, as general obligations, have the protection of a constitutional appropriation, the focus of security is the long-term credit quality of the State of Texas since bonds will provide permanent financing. General obligations of the State of Texas are rated "AA+" by Fitch and the state has well demonstrated market access.
 Liquidity for the notes will be provided by the Texas Treasury, which has assets of some $8.1 billion, of which about 39 percent are in overnight maturities. The treasury also intends to provide liquidity for $300 million commercial paper notes which the state plans to issue in January 1994 for its own cash management purposes. The treasury has previously performed this function for the state. Conditions to advance under the agreement are not onerous and primarily relate to bankruptcy, moratorium and payment default.
 The State of Texas has low debt in relation to resources and even including the total authorized but unissued debt as well as authorizations to be submitted to the voters in November 1993, would remain well below average. Financial operations have also been generally conservative. The general revenue fund closed the fiscal year ended Aug. 31, 1993, with a cash balance of about $1.6 billion, but most of this will be utilized during the current biennium. The budget for the 1994-95 biennium is balanced. The state's economy has shifted reliance from minerals and agriculture to services, trade and manufacturing. Since its resilient recovery from the oil-induced recession of the 1980's, growth has outpaced the nation. Currently, both employment and personal income are increasing at rates above those for the United States.
 -0- 9/17/93
 /CONTACT: Claire G. Cohen of Fitch, 212-908-0552/


CO: Texas Public Finance Authority ST: Texas IN: SU: RTG

GK -- NY045 -- 3257 09/17/93 17:42 EDT
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Publication:PR Newswire
Date:Sep 17, 1993
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