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TEXAS SUPERCONDUCTING SUPER COLLIDER BONDS RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --

 TEXAS SUPERCONDUCTING SUPER COLLIDER BONDS RATED 'A' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Nov. 27 /PRNewswire/ -- Texas National Research Laboratory Commission Financing Corp.'s $250 million lease revenue bonds Series 1991 (Superconducting Super Collider Project) are rated 'A' by Fitch. The bonds are expected through negotiation the week of Dec. 9, by a syndicate led by Goldman Sachs & Co. The bonds will have serial and term maturities at levels to be determined. The bonds are payable from rentals made by the state through the Texas National Research Commission, a state agency, and are subject to biennial legislative appropriations. The credit trend is stable.
 The rating reflects the ability of the state of Texas to meet its rental obligation on the bonds, and the role of the super collider project in the state's economic development efforts. While there is no security interest in the leased assets, and the sole source of payment is the continued willingness of the state of Texas to appropriate sufficient funds, the scientific facilities are consistent with the states's economic development efforts. Risks center around the federal government, which is the sponsor and primary provider of funds for the project, and its continued funding of the construction project given its long duration and magnitude. Nevertheless, the intended scientific and commercial benefits are broad in scope and continued funding by the federal government has been evidenced, as over $1 billion in federal funds to date have been appropriated. Should the federal government not complete full construction of the project, the state would not completely lose its investment, as it would have the use of certain facilities for related research purposes.
 State support for the project has been strong, including voter authorization of $500 million in general obligation bonds, half of which has been issued. Furthermore, while this issue is the first installment of a $500 million authorization in lease revenue bonds, a substantial amount, debt service on the revenue bonds will represent a negligible portion of the state's budget. The state's ability to pay is strong. State debt levels are low and long-term economic prospects are favorable.
 -0- 11/27/91
 /CONTACT: Richard Raphael, 212-908-0500, or Claire Cohen 212-908-0552, both of Fitch/ CO: Texas National Research Laboratory Commission Financing Corp ST: Texas IN: SU: RTG


CK -- NY047 -- 7837 11/27/91 15:32 EST
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Publication:PR Newswire
Date:Nov 27, 1991
Words:387
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