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NEW YORK TELEPHONE $250 MILLION 7 PERCENT DEBENTURES DUE 2025 RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

    NEW YORK, Aug. 5 /PRNewswire/ -- New York Telephone Co.'s (NYT) $250 million 7 percent debentures 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. The credit trend is improving.
    New York Telephone has strengthened credit quality by cutting costs and improving responsiveness to business and residential customers. The company also improved the range and quality of service to customers, as exemplified by the recent introduction of NYNEX Enterprise service. Enterprise service will allow NYT to meet business customers' demand for flexible bandwidth. Pretax interest coverage was 4.2 times (x) for 1993's first quarter, and profitability, as measured by return on average equity, was 13.8 percent. The company is generating sufficient cash from internal sources to fund all its capital needs. NYT's first- quarter 1993 debt ratio was 42.7 percent.
    Intensifying competition will make it increasingly important for NYT to control operating costs. U S WEST has entered into an alliance with Time Warner Entertainment to build a full service network that will compete with NYT in the future. The company also faces competitive threats from alternative access providers such as Teleport Communications Group.
    New York Tel. headquartered in New York, is a subsidiary of NYNEX Corp.
    -0-             08/05/93
    CONTACT:  Timothy Cain of Fitch, 212-908-0587
    (NYN) CO:  NEW YORK TELEPHONE COMPANY IN:  TLS SU:  RTG ST:  NY


-- NY094 -- X404 08/05/93
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Publication:PR Newswire
Date:Aug 5, 1993
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