CINCINNATI BELL INC. $50 MILLION 7 1/4 PERCENT NOTES DUE 2023 RATED "A"
CHICAGO, July 2 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of "A" (Single-A) to Cincinnati Bell Inc.'s offering of $50 million 7 1/4 percent senior unsecured notes due June 15, 2023. Proceeds will be used to reduce short-term debt balances. The volatility of Cincinnati Bell Inc.'s non-regulated subsidiaries is balanced by the stability of the company's primary subsidiary, Cincinnati Bell Telephone (CBT). Results from non-regulated entities have been disappointing in recent years. Cost cutting efforts should lead to improved performance in 1993 and beyond. Operating income at CBT has slid in recent years due to higher depreciation and operating expenses. As a result, on May 5, CBT filed for a $17 million rate increase. Construction expenditures are estimated at approximately $500 million for the 1993-95 time period, with the majority of funds devoted to CBT's capital program. Assuming no increase in Cincinnati Bell Inc.'s common dividend until 1995, internal cash should fully fund construction expenditures during that time. Cincinnati Bell Inc.'s primary subsidiary, Cincinnati Bell Telephone, provides local telecommunications services to over 833,000 access lines in the greater Cincinnati, Ohio metropolitan area, which encompasses a portion of Kentucky and Indiana. Non-regulated subsidiaries include: CBIS, MATRIXX Marketing, Cincinnati Bell Long Distance, Cincinnati Bell Supply, Cincinnati Bell Directory, and Cincinnati Bell Cellular Systems, a joint venture with Ameritech. -0- 7/2/93 /CONTACT: James J. Stork, CFA of Duff & Phelps Credit Rating Co., 312-368-3125/ (CSN)
CO: Cincinnati Bell Inc. ST: Ohio IN: UTI SU: RTG
LG-MG -- NY033 -- 8232 07/02/93 15:17 EDT
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|Date:||Jul 2, 1993|
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