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VIACOM 'BBB-/BB+' SR./SUB. RATINGS ON FITCHALERT EVOLVING -- FITCH FINANCIAL WIRE --

 NEW YORK, Oct. 26 /PRNewswire/ -- Viacom International Inc.'s $450 million "BB+" subordinated debt and $800 million "BBB-/BB+" senior/subordinated shelf registrations are changed from FitchAlert positive to evolving, which means ratings may be raised or lowered. The action is in response to Viacom's decision to increase its bid for Paramount Communications, Inc. to $9.4 billion from $8.2 billion.
 Key to any rating change is how much Viacom ultimately pays for Paramount if the acquisition is successful, and how it is financed. In the transaction's current form, the combined Viacom/Paramount entity should be able to sustain an investment grade profile.
 A downgrade could result if the debt used to support the bid's cash portion is increased beyond the amount currently being proposed. The financial burden from additional debt could result in debtholder protection measures at levels below investment grade for the combined Viacom/Paramount.
 An upgrade is possible if Viacom attracs? additional equity and/or changes the mix of the equity securities used in the current bid. Either scenario could decrease the amount of leverage used to support Viacom's bid. To date, Viacom has raised $1.8 billion of investments from Blockbuster Entertainment Inc. and NYNEX Corp.
 -0- 10/26/93 R
 /CONTACT: Keith B. Foley, 212-908-0572 or Stuart M. Rossmiller, 212-908-0639, both of Fitch/
 (VIA PCI)


CO: Viacom International Inc.; Paramount Communications, Inc. ST: New York IN: ENT SU: RTG

LG -- NY050R -- 7255 10/27/93 11:50 EDT
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Publication:PR Newswire
Date:Oct 27, 1993
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