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VIRGINIA'S $183.9 MILLION GENERAL OBLIGATION BONDS RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Nov. 10 /PRNewswire/ -- The Commonwealth of Virginia's $183,890,000 general obligation bonds, offered for bids on Nov. 17, are rated "AAA" by Fitch and the "AAA" rating assigned to $810.3 million outstanding general obligations is affirmed. The credit trend remains stable. The new issue comprises $5,105,000 for higher educational construction and $178,785,000 for refunding purposes. The bonds are due on June 1 (construction, 1994-2013, and refunding, 1994-2022, with a 2007 term bond) and will become callable June 1, 2003, at 102 percent.
 Virginia's substantial resources, conservative approach to financial operations, and careful attention to both the level and security of its debt obligations provide superior protection to bondholders.
 With a measure of recovery from the recession, financial operations in 1992-93 surpassed expectations; revenues were about 2 percent over estimates and the general fund closed with a balance of $331.8 million. After taking account of re-appropriations, etc., a transfer of $79.9 million will be made from the balance to the revenue stabilization fund and after taking account of re-appropriations, etc., a balance of $59.7 million is projected for June 30, 1994. Revenue growth in the first quarter of 1993-94 was favorable, exceeding estimates.
 Virginia's economy is showing growth, but gains in employment and personal income are lagging the nation. Employment in July was 0.6 percent over the level of a year ago, with strength in the service industries but weakness in manufacturing and trade. While personal income per capita grew a little more slowly in the state than in the United States in 1992, the state figure equaled 105 percent of the national figure.
 Net tax supported debt of the commonwealth remains low in relation to its resources, at $315 per capita, and 1.4 percent of personal income. Even if all authorized but unissued debt were included, debt ratios would remain low.
 -0- 11/10/93
 /CONTACT: Claire G. Cohen of Fitch, 212-908-0552/


CO: ST: Virginia IN: SU: RTG

TW -- NY040 -- 2714 11/10/93 11:27 EST
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Publication:PR Newswire
Date:Nov 10, 1993
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