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RJR NABISCO $750 MILLION 8 PERCENT SENIOR NOTES RATED 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Jan. 7 /PRNewswire/ -- RJR Nabisco, Inc.'s recently announced $750 million offering of 8 percent senior notes due Jan. 15, 2000 is rated "BBB" by Fitch. Proceeds from the sale of these securities will be used for general corporate purposes, including refinancing outstanding debt, capital expenditures, acquisitions, and repurchasing and redeeming outstanding securities.
 Fitch views favorably the actions taken by RJR's management since the 1989 LBO to reduce the amount of debt outstanding, slash the cost of that debt, and rationalize the debt maturity schedule. Today, RJR's substantial and predictable free cash flow provides more than adequate financial cushion for debtholders.
 Mitigating some of the positive financial factors is the continuing domestic trend toward generic cigarettes. This trend will continue to be a source of margin erosion for the domestic tobacco industry. However, the company has been successful in entering into several promising ventures in the international markets where consumption is growing.
 RJR is the second largest tobacco company in the United States, and, through its Nabisco Foods Group, ranks as one of the world's largest packaged foods companies. The credit trend is improving.
 -0- 1/7/93
 /CONTACT (or for more rating or legal information): Thomas W. Hoens, CPA 212-908-0569 or Leah W. Murch, Esq., 212-908-0511, both of Fitch/
 (RN)


CO: RJR Nabisco, Inc. ST: IN: FOD TOB SU: RTG

TS -- NY055 -- 2637 01/07/93 11:48 EST
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Publication:PR Newswire
Date:Jan 7, 1993
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