In a released statement, Fitch indicates that this offering represents a "new security for the City of Boston" due to the revenues from a room occupancy excise tax, a rental car surcharge, proceeds from the sale of hackney licenses, and a small interest cost subsidy from the state. Bond proceeds, in combination with accumulated pledged receipts to date, will be used, in part, to retire $157.8 million of outstanding general obligation bond anticipation notes which are due May 1, 2002

The statement notes that the A+ rating incorporates Boston's narrowly defined role in the convention center project, the favorable coverage of debt service by pledged receipts and strong legal provisions. Under the Convention Center Loan Act of 1997, Boston, acting through its redevelopment agency, and the state, acting through its convention center authority, are jointly developing the Boston Convention and Exhibition Center. Boston is responsible for the site acquisition and preparation, including environmental remediation and the state is responsible for the design, construction and operation of the facility. Site acquisition and preparation are substantially complete and the early stages of construction are underway.

With this financing, Boston meets the bulk of its financial commitment to the project. Fitch points out in the statement that there "remains a possibility that final disposition of eminent domain cases for 11 parcels would require additional outlays, although Boston's contribution is capped at $25 million if aggregate site acquisition costs exceed $205 million."