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CNG $150 MILLION DEBENTURES RATED 'AA' BY FITCH, OUTSTANDING DEBT AFFIRMED -- FITCH FINANCIAL WIRE --

 CNG $150 MILLION DEBENTURES RATED 'AA' BY FITCH, OUTSTANDING DEBT
 AFFIRMED -- FITCH FINANCIAL WIRE --
 NEW YORK, Oct. 5 /PRNewswire/ -- Consolidated Natural Gas Co.'s (CNG) proposed $150 million, 6-year debentures are rated 'AA' by Fitch. This new issue is a shelf registration takedown. Fitch affirms its 'AA' rating on approximately $733 million of outstanding debentures and its 'AA-' on $250 million of outstanding subordinated convertible debentures. The credit trend is stable.
 These ratings reflect the operating and financial strengths of CNG's conservatively managed portfolio of diversified but interrelated domestic energy businesses. CNG's recent equity offering demonstrates a firm commitment to maintain one of the most prudent balance sheets in the domestic gas pipeline industry. Quality of earnings is high. Future external capital requirements are very moderate. Cash flows are quite strong and predictable. Overall liquidity and financial flexibility are excellent.
 In spite of mild heating-season weather and chronic economic recession, CNG's operating and financial fundamentals held up quite well during 1990-1991. Certain credit quality measures did decline, but Fitch projections indicate that a recovery is in progress. Further improvement seems likely going forward. Pretax interest coverage declined from an exceptional 4-to-5-times(x) level during the mid- and late-1980s to about 3x in 1990-91. Pretax coverages are expected to strengthen over the next several years. Cash interest coverages trace a similar pattern: dipping from the 6-to-7x level during the last two years, and beginning to track toward 4-to-5x for 1992 and beyond. Long- term debt to capital has consistently remained in the 30-to-35 percent range since the late-1980s. It is expected to remain in this area through the mid-1990s. Total debt, including short-term seasonal borrowing, typically peaks at around 45 percent of overall year-end capitalization. These patterns are expected to recur in future years, given seasonal borrowing requirements and manageable capital spending programs.
 -0- 10/5/92
 /CONTACT: William Stellenwerf, CPA of Fitch, 212-908-0558/
 (CNG) CO: Consolidated Natural Gas Co. ST: Pennsylvania IN: OIL SU: RTG


KD -- NY071 -- 6647 10/05/92 13:52 EDT
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Date:Oct 5, 1992
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