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VIRGINIA $103.9 MILLION GENERAL OBLIGATION BONDS RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --

 VIRGINIA $103.9 MILLION GENERAL OBLIGATION BONDS RATED 'AAA' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, June 5 /PRNewswire/ -- The Commonwealth of Virginia's $103.9 million general obligation bonds, to be offered for bids on June 9, are rated 'AAA' by Fitch.
 The issue includes $44.4 million Higher Educational Institutions Bonds, Series 1992 C, due June 1, 1993-2022, and $59.5 million Article X, Section 9 (c) Refunding Bonds (also for higher education) Series 1992, due June 1, 1993-2005; the bonds are callable beginning June 1, 2002. The bonds are general obligations of Virginia and the commonwealth's full faith and credit are pledged to payment. Anticipated net revenues from the facilities at the various institutions which will be financed from proceeds of the bonds are pledged for actual debt service payment and have been certified as sufficient. The facilities include residence halls, parking facilities, etc., at seven institutions.
 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.
 The recession remains very evident in Virginia with employment below the 1990 level and personal income growing only very slowly. The most affected sectors have been construction, manufacturing, and trade. Uncharacteristically, the unemployment rate approximates that of the nation. Recovery is anticipated to be slow, with muted growth over the next two years. Reductions expected in defense spending contribute to the forecast.
 The cessation of growth has caused revenue estimates to be lowered several times over the past two years, leading to expenditure reductions and other measures to retain financial stability. The general fund will have a small balance at June 30, the close of the present biennium. The adopted budget for 1992-94 is in balance, although narrowly, and is based on revenue estimates which appear reasonable. Tax collections through April are about 3.7 percent over the same period last year and are slightly ahead of the most recent official estimate made in December 1991.
 Debt of the commonwealth represents a low burden on resources. Net tax-supported debt of $1.4 billion is equal to $234 per capita and 1.1 percent of personal income. Debt service is less than 3 percent of general fund revenues.
 -0- 6/5/92
 /CONTACT: Claire G. Cohen of Fitch, 212-908-0512/ CO: State of Virginia ST: Virginia IN: SU: RTG


PS -- NY023 -- 7382 06/05/92 10:32 EDT
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Publication:PR Newswire
Date:Jun 5, 1992
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