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NEW YORK TELEPHONE $200 MILLION REFUNDING MORTGAGE BONDS RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Nov. 16 /PRNewswire/ -- New York Telephone's $200 million 7 percent refunding mortgage bonds due Aug. 15, 2025 are rated 'A+' by Fitch. The rating reflects the company's improved financial performance, despite ongoing weakness in the New York State economy.
 New York Telephone has improved its financial performance by cutting costs and improving responsiveness to both business and residential customers. The company has also improved the range and quality of service to customers, as exemplified by the introduction this year of NYNEX Enterprise service. Enterprise service will allow NYT to offer bandwidth on demand to business customers. Pretax interest coverage was 4.4x for the first six months of 1993, and profitability, as measured by return on average equity was 14.5 percent. The company is generating sufficient cash from internal sources to fund all its capital needs. New York Telephone's debt ratio was 41.2 percent at June 30, 1993.
 Competition is intensifying in New York Telephone's service territory. U S WEST has entered into an alliance with Time Warner Entertainment to build a full service network that will compete with New York Telephone in the future. Competition will make it increasingly important for the company to control operating costs.
 New York Telephone, headquartered in New York, is a subsidiary of NYNEX Corp. (NYSE: NYN).
 -0- 11/16/93
 /CONTACT: Timothy Cain of Fitch, 212-908-0587/
 (NYN)


CO: New York Telephone ST: New York IN: TLS SU: RTG

WB-JG -- NY096 -- 4238 11/16/93 17:08 EST
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Publication:PR Newswire
Date:Nov 16, 1993
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