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SPRINT CAPITAL CORPORATION $600 MILLION SHELF REGISTRATION RATED 'BBB' BY DUFF & PHELPS

 CHICAGO, July 16 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of 'BBB' (Triple-B) to Sprint Capital Corporation's (Capital) shelf registration for issuance of up to $600 million of senior debt securities and warrants. Planned issuances will be the initial public offering of securities by Sprint Capital. Payment of principal and interest on the debt of Capital is subject to an unconditional guarantee by its parent, Sprint Corporation (Sprint). Duff & Phelps Credit Rating Co. currently rates the senior debt of Sprint 'BBB' (Triple-B).
 Capital's purpose is to engage in financing activities that provide funds for use by Sprint and its subsidiaries, other than its local exchange telephone subsidiaries. Capital will not engage in any other business operations. As a result, the rating of its debt reflects the unconditional guarantee of Sprint. The guarantee ranks equally with all other unsecured and unsubordinated obligations of Sprint. The ratings of Sprint recognize the volatility of earnings in the highly competitive long distance market. Positively, total debt is expected to remain stable in the near-term and decline in the future, since Sprint's internally generated funds are now sufficient to fund capital expenditures for the long distance network. In addition, Sprint's ratings reflect the strong credit quality of Sprint's local telephone subsidiaries. However, it is important to note that the subsidiaries' creditors have a prior claim on subsidiary cash flow and assets.
 Sprint Corporation's long distance division is the third largest long distance services provider in the U.S. The company is the second largest of the non-Bell telephone holding companies providing service to approximately 5.8 million access lines in 19 states. The cellular properties acquired in the Centel merger serve 392,000 customers in markets containing 20.3 million "pops" in 23 states. Sprint's Complementary Businesses group includes units which supply telco equipment, publish directories, and market financial software.
 -0- 7/16/93
 /CONTACT: James J. Stork, CFA of Duff & Phelps Credit Rating Co., 312-368-3125/
 (FON)


CO: Sprint Capital Corporation ST: Missouri IN: TLS SU: RTG

PS -- NY024 -- 2442 07/16/93 12:00 EDT
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Publication:PR Newswire
Date:Jul 16, 1993
Words:344
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