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FEDERAL SIGNAL $15 MILLION COMMERCIAL PAPER RAISED TO 'F-1' BY FITCH -- FITCH FINANCIAL WIRE --

        FEDERAL SIGNAL $15 MILLION COMMERCIAL PAPER RAISED TO
             'F-1' BY FITCH -- FITCH FINANCIAL WIRE --
    NEW YORK, Feb. 3 /PRNewswire/ -- Federal Signal Corp.'s (NYSE: FSS) commercial paper is raised to 'F-1' from 'F-2' by Fitch based on the company's continuing strong operating record and its conservative financial leverage.  Outstanding commercial paper is approximately $15 million.
    Key operating strengths which have contributed to Federal Signal's growth and stability include diversification, decentralization, and leadership positions in niche markets.  Over the past five years sales and earnings have grown at compound growth rates of 11 percent and 19 percent, respectively.  Margins have improved due to effective management of operating costs.  Cash flow over the last five years has been more than adequate to meet operating requirements.  For the first nine months of fiscal 1991, annualized operating funds flow and "free" cash flow as a percent of total debt were 76.7 percent and 55.0 percent, respectively.  Profitability and interest coverage have also remained strong.  For the same period, annualized return on capital was 23.1 percent and interest coverage was 8.7 times.
    Total debt at 26.3 percent of capitalization as of Sept. 30 is conservative considering the finance company characteristics of the enterprise.  Some $89.6 million of finance receivables are consolidated on the balance sheet and provide substantial financial flexibility since customer financing, although an important marketing tool, could be arranged with third parties.
    Federal Signal Corp., with headquarters in Oak Brook, Ill., is a diversified manufacturer with four operating groups: Tool, Vehicle, Signal, and Sign.  Products include precision punches and carbide cutting tools; fire trucks and street sweepers; sirens, emergency lights, fire alarm systems, access and parking control systems; and custom signs.  Customer financing is made available for fire truck, street sweeper and sign sales.
               -0-    2/3/92
    /CONTACT: Norman Johnson of Fitch, 212-908-0598/
    (FSS) CO:  Federal Signal Corp. ST:  Illinois IN: SU:  RTG SB -- NY083 -- 6274 02/03/92 15:02 EST
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Publication:PR Newswire
Date:Feb 3, 1992
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