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ALLIED-SIGNAL 'A' SENIOR DEBT, 'F-1' COMMERCIAL PAPER AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --

ALLIED-SIGNAL 'A' SENIOR DEBT, 'F-1' COMMERCIAL PAPER AFFIRMED BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, March 31 /PRNewswire/ -- Allied-Signal Inc.'s "A" senior debt and "F-1" commercial paper ratings are affirmed by Fitch, it was announced today. Also affirmed are the "A" ratings for senior debt of Allied Corp., Allied Chemical Overseas Finance N.V., and Signal Companies, Inc.; Signal Companies' "A-" subordinated debt is also affirmed.
 Debt issued by these predecessor entities is guaranteed by Allied- Signal. These affirmations apply to $1.3 billion of rated senior debt; approximately $400 million of commercial paper is currently outstanding. The credit trend is upgraded to improving from stable.
 Led by its new chairman, the company is proceeding with a comprehensive effort designed to produce superior operating and financial performance. Key actions include reducing salaried employment by 5600 positions and closing ten manufacturing facilities. Allied has in place strategies to improve total quality and productivity, reduce manufacturing cycle times, and divest selected non-strategic assets. Financial performance will benefit from disciplined capital expenditures, improved working capital turns, and lower dividend outlays.
 As a result, Allied aims to be cash-flow breakeven in 1992 excluding any benefit from asset sales. Even with conservative economic assumptions, 1992 earnings and margins will begin to reflect the cost-reduction efforts. Debt leverage should decline gradually with earnings progress and a lower payout, with a more rapid improvement when d? disposes of its interest in Union Texas Petroleum Corp. Beyond this year, the company should be cash flow positive, enhancing financial flexibility and options for growth.
 Allied's fundamental position remains solid. Some 65 percent of total sales arise from products in which it has a leading or strong market share. Its three core businesses - aerospace, automotive, and engineered materials -- are internally well balanced and poised to benefit from new product flows and leaner, more efficient operations.
 -0- 3/31/92
 /CONTACT: Mary Anne Sudol, CFA of Fitch, 212-908-0562/
 (ALD) CO: Allied-Signal Inc. ST: New Jersey IN: ARO SU: RTG


TS -- NY044 -- 3342 03/31/92 10:50 EST
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Publication:PR Newswire
Date:Mar 31, 1992
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