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/C O R R E C T I O N -- DUFF & PHELPS WESTPOINT STEVENS RATING/

 In NY044, Duff & Phelps Rates WestPoint Stevens Inc., moved Dec. 20, we are advised by Duff & Phelps that the second line should read "initial public rating of "BB-" (Double-B-Minus) to WestPoint Stevens Inc.'s $400 million issues of senior notes due 2001" rather than "initial public rating of "BB" (Double-B)" as originally issued.
 The corrected release follows:
 CHICAGO, Dec. 20 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned an initial public rating of "BB-" (Double-B-Minus) to WestPoint Stevens Inc.'s $400 million issues of senior notes due 2001 to WestPoint Stevens Inc.'s $400 million issues of senior notes due 2001 and a rating of "B+" (Single-B-Plus) to its $550 million issue of senior subordinated debentures due 2005. Proceeds were used for the repayment of bank debt.
 WestPoint Stevens was formed in December 1993, through the merger of Valley Fashions Corp., a holding company, with its operating subsidiary, West Point-Pepperell, Inc. WestPoint Stevens is a manufacturer of bed and bath textile products that are marketed under several well known brand names.
 The company's capital structure, while still highly leveraged, has been greatly improved since WestPoint Stevens' emergence from chapter 11 bankruptcy proceedings in September 1992. Public senior debt is effectively subordinated to $250 million of bank debt.
 Through WestPoint Stevens' low cost structure, the company is able to achieve significantly higher operating margins than its competitors. However, due to highly competitive nature of the industry, future cost savings achieved by WestPoint Stevens will likely be passed on to customers in the form of lower prices. In addition, the company is highly capital intensive. Sizable ongoing capital expenditures, particularly over the next two years, are projected to be made to maintain WestPoint Stevens' low cost position.
 The company's excellent distribution system and large manufacturing capability have enabled it to establish strong relationships with large, high volume merchandisers. WestPoint Stevens holds strong market positions in the domestic bed linen market (33 percent market share) and a domestic bath towel market (31 percent). However, the customer base is highly concentrated with the seven largest customers accounting for approximately 40 percent of total sales.
 -0- 1/6/94
 /CONTACT: Doris S. Nakamura of Duff & Phelps Credit Rating Co., 312-368-3130/
 /PRNewswire -- Jan. 6/
 (WPM)


CO: WestPoint Stevens Inc.; West Point-Pepperell, Inc. ST: IN: TEX SU: RTG

SH -- NY101 -- 9932 01/06/94 17:39 EST
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Publication:PR Newswire
Date:Jan 6, 1994
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