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K N ENERGY $50 MILLION 6 1/2 PERCENT DEBENTURES DUE 2013 RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Sept. 7 /PRNewswire/ -- K N Energy, Inc.'s (NYSE: KNE) $50 million issue of 6 1/2 percent sinking fund debentures due 2013 is rated `A' by Fitch. The company's outstanding $135 million `A' sinking fund debentures, $4 million `A' preferred stock, and `F-1' commercial paper are affirmed. The credit trend is changed to stable from improving.
 Management has successfully positioned the company to compete more effectively in the post-Federal Energy Regulatory Commission Order 636 unbundled service environment. KNE's focus on core natural gas businesses is resulting in generally stronger and more predictable credit fundamentals. The company's balance sheet is considerably stronger than it was in the late 1980s, when common equity was less than 40 percent of capitalization. Pro forma stockholder's equity, including preferred stock, will approximate 48 percent of total capitalization after this debt issue has been sold and higher coupon obligations have been retired.
 Improved operating results from the integration of several recent strategic acquisitions, including the Wattenberg natural gas gathering and transportation system northeast of Denver, Colo., have more than offset the reduced income and cash flow impact of a second consecutive year of seasonally lower irrigation gas volumes. Additionally, outstanding environmental litigation uncertainties have been materially resolved.
 -0- 9/7/93
 /CONTACT: Ralph Pellecchia of Fitch, 212-908-0586/
 (KNE)


CO: K N Energy, Inc. ST: Colorado IN: OIL SU: RTG

MP -- NY053 -- 9404 09/07/93 15:01 EDT
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Publication:PR Newswire
Date:Sep 7, 1993
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