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UNITED NATIONS DEVELOPMENT CORP. SR/SUB 1992 REF. BONDS 'A+/A' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Nov. 30 ~PRNewswire~ -- United Nations Development Corp. (NY)'s $134.5 million 1992 refunding bonds, Series A & C (senior lien) and $32 million 1992 refunding bonds, Series B (subordinate lien) are rated "A+" and "A", respectively, by Fitch. The credit trend is stable. The bonds are expected to be sold through negotiation the week of Dec. 7.
 The rating reflects the corporation's favorable operating history, above average historical and projected debt service coverage, and adequate security provisions under this new indenture. Also, the special purpose of the corporation is likely to result in a low expected vacancy rate for its leasable office space as long as the United Nations remains headquartered in New York City. Credit concerns include the strong dependence on the United Nations and the United Nations Children's Fund (UNICEF) to perform favorably under their lease obligations in light of their potential ability to assert the principal of sovereign immunity. The declining contribution to net revenues from the hotel operation is an additional, but lesser, concern.
 The bonds are general obligations of the corporation payable from, and secured by, net revenues from project operations and the funds and accounts held by the trustee. Project operations consist primarily of leasing 909,000 square feet of office space, nearly all of which is leased to the UN, nine permanent missions, and UNICEF, and operating the UN Plaza Hotel and other residential apartments.
 Bond proceeds along with other available funds will be used to refund the corporation's outstanding $32 million 1983 Phase I refunding bonds and $126 million 1986 Phase II~III refunding bonds, Series A & B.
 The corporation is a public benefit corporation organized and existing under state laws for the purpose of coordinating the development of office space, hotel accommodations, and other facilities for the international community including the United Nations, its programs and activities, and missions to the United Nations.
 -0- 11~30~92
 ~CONTACT: Vincent J. Barberio of Fitch, 212-908-0505~


CO: United Nations Development Corp. ST: New York IN: SU: RTG

GK -- NY023 -- 4071 11~30~92 10:23 EST
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Publication:PR Newswire
Date:Nov 30, 1992
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