BELLSOUTH TELECOMMUNICATIONS, INC. $450 MILLION 6-1/4 PERCENT NOTES DUE 2003 RATED 'AAA'
CHICAGO, May 5 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of 'AAA' (Triple-A) to BellSouth Telecommunications, Inc.'s (BST) $450 million offering of 6 1/4 percent notes, due May 15, 2003. The non-callable notes were priced at 99.557 to yield 6.31 percent to maturity. BellSouth Telecommunications, Inc. has excellent coverage of interest expense, nearly complete internal funding of a high-growth construction program, a debt ratio among the lowest of the local exchange telephone companies, and economic and regulatory diversity from operating in nine southeastern states. BST has incentive regulatory plans in eight of these nine states. Earnings rose sharply in 1992 due to good volume and revenue growth, reductions in wage and salary expenses due to early retirement programs in 1991, and lower interest expense related to refinancing of higher cost debt. Further, while aggressive depreciation programs have lowered reported earnings, they have provided internally generated funds which have enabled BST to finance its capital expenditures with modest additional debt. BST's debt ratio has remained steady between 38 percent and 39 percent since 1988. BellSouth Telecommunications, Inc. is the largest local exchange telephone company in the United States, providing service to nine southeastern states. The company was formed by the merger of South Central Bell Telephone Company and Southern Bell Telephone and Telegraph Company at the end of 1991. The rating of BST's debt is the same as the rating that applies to outstanding senior unsecured debt issued by South Central Bell and Southern Bell. BST is a wholly owned subsidiary of BellSouth Corporation, providing over 85 percent of BellSouth's revenues and nearly all of its net income. -0- 5/5/93 /CONTACT: James J. Stork, CFA of Duff & Phelps Credit Rating Co., 312-368-3125/ (BLS)
CO: BellSouth Telecommunications, Inc. ST: Georgia IN: TLS SU: RTG
SH -- NY067 -- 4927 05/05/93 14:05 EDT
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|Date:||May 5, 1993|
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