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SPRINT CAPITAL $600 MIL. SHELF DEBT RATED 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, July 8 /PRNewswire/ -- Sprint Capital Corp.'s (NYSE: FON) $600 million shelf registration is rated `BBB' by Fitch. Sprint Capital was established to provide financing for Sprint Corp. and its non-local telephone subsidiaries. The rating is based on the unconditional guarantee by the parent of payment of principal and interest on all debt securities and the performance of Sprint Capital obligations under any warrants. The guarantee ranks equally with all other unsecured and unsubordinated Sprint obligations. Sprint's unsecured debentures and notes are rated `BBB'.
 Fitch expects Sprint to show modest improvement in financial results from long distance and local telephone operations in the second half of 1993 and in 1994. Sprint recorded two non-recurring charges in the first quarter of 1993: a $248 million charge for costs related to the merger with Centel Corp., and a $384 million charge to reflect new accounting standards primarily for post employment benefits. First quarter cash flow, coupled with manageable growth in capital spending, allowed the company to reduce its debt level in absolute terms. Without the first quarter accounting charges, Sprint's debt ratio would have been about 57 percent at the end of March, down from 60 percent at year-end 1991.
 The accounting charge and merger costs masked ongoing improvement in the long distance division, where revenues grew by 10 percent over the prior year's first quarter. Long distance traffic volumes measured by minutes of use increased by more than 9 percent over the first quarter of 1992.
 Although the long distance division is showing solid growth, local telephone operations still contribute most of Sprint's operating income. The local telephone companies experienced a 4.3 percent growth in access lines in the twelve months ending March 31, 1992, a faster growth rate than the average increase recorded by the former Bell operating companies. Product and equipment distribution and directory publishing continue to make a limited but stable and predictable contribution to overall financial results.
 The addition of Centel's cellular operations will not have significant near-term impact on Sprint's consolidated results.
 -0- 7/8/93
 /CONTACT: Timothy Cain of Fitch, 212-908-0587/
 (FON)


CO: Sprint Capital Corp. ST: IN: FIN SU: RTG

MP -- NY051 -- 9491 07/08/93 12:13 EDT
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Publication:PR Newswire
Date:Jul 8, 1993
Words:368
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