DUFF & PHELPS PLACES COMCAST CORP. DEBT ON RATING WATCH SENIOR DEBT RATING REAFFIRMED AT 'BB'
CHICAGO, Sept. 30 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has placed its credit ratings of Comcast Corporation's debt on its Rating Watch -- Down. Duff & Phelps currently rates Comcast's senior debt `BB' (Double-B), its senior subordinated debt `BB-' (Double-B- Minus), and its convertibles subordinated debt `B' (Single-B). About $1.5 billion of securities are affected by the rating action. The Rating Watch was initiated due to Comcast's participation, via its ownership interest in QVC Network, Inc., in a bidding contest for Paramount Communications. Paramount was initially put into play on Sept. 12, 1993, with a bid from Viacom Inc. to buy the company for $8.2 billion. QVC has offered $9.5 billion for Paramount in a deal which would require Comcast to invest an additional $500 million in its affiliate. While no specific deal structure has been agreed to -- indeed, more suitors may yet emerge in the bidding contest -- the current proposal would probably result in higher debt levels at Comcast without a corresponding increase in internal cash flows. Of further concern from a credit rating perspective is that Paramount's suitors appear to view the acquisition as a critically important strategic play, indicating a significant chance that the successful bidder will pay more than Paramount is worth on a near-term cash flow basis. -0- 9/30/93 /CONTACT: Matthew D. Robbins, CFA of Duff & Phelps Credit Rating Co., 312-368-3120/ (CMSA)
CO: Comcast Corporation ST: Pennsylvania IN: TLS SU: RTG
CK -- NY074 -- 7346 09/30/93 13:50 EDT
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|Date:||Sep 30, 1993|
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