Printer Friendly

COX ENTERPRISES, SOUTHWESTERN BELL TELEPHONE RATINGS AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Dec. 7 /PRNewswire/ -- Cox Enterprises, Inc.'s `F-1' 4(2) commercial paper program is affirmed by Fitch. The action follows an announcement that Cox intends to form a joint venture partnership with Southwestern Bell Corp. (SBC). Also affirmed are the `AA-' debentures of Southwestern Bell Telephone Co., SBC's telephone operating subsidiary. Fitch does not rate the parent SBC's debt.
 In exchange for a 40% interest in 21 Cox cable systems, representing approximately 1.62 million subscribers, SBC plans to invest up to $1.6 billion in cash or cable assets in the partnership and give Cox $1.0 billion in preferred stock. The new joint partnership will use the SBC $1.6 billion investment proceeds to finance cable television system and programming acquisitions and the development of Cox's broadband network.
 Fitch views these events as favorable to Cox. Aside from providing Cox with $1.0 billion in SBC preferred stock, it gives the company's cable operations access to SBC technical and operational expertise in telephony. In addition, this transaction provides Cox the capital to increase the size of its cable operations without relying on additional parent company debt. As a result, Fitch expects leverage and coverage ratios to remain within levels consistent with Cox's `F-1' rating.
 The affirmation of Southwestern Bell Telephone Co.'s debentures reflects the manageable size of the investment and Fitch's expectation that the commitment to fund the partnership will not require upstreaming of cash from the telephone subsidiary. Fitch believes that the Cox partnership assets are high-quality cable systems with strong cash flows and solid market positions. The partnership is expected to be fully self-funded. SBC has the option of increasing its 40% ownership interest to 50%.
 Cox Enterprises, Inc. is a family-owned media company headquartered in Atlanta. The company owns and operates the nation's 10th-largest newspaper group, sixth-largest cable television operation, and a number of radio and broadcast television stations nationwide. Cox also owns the largest automobile auction operation in the world.
 Southwestern Bell is an international communications corporation who provides products and services through Southwest Bell Telephone, Southwestern Bell Yellow pages, Southwestern Bell Mobile Systems, Southwestern Bell Telecom, and Southwestern Bell International Holdings. SBC and Cox are partners in the U.K., where they offer cable television and services to businesses and residences.
 -0- 12/7/93
 /CONTACT: Stuart M. Rossmiller, 212-908-0639, or Timothy Cain, 212-908-0587, both of Fitch/
 (SBC)


CO: Cox Enterprises, Inc.; Southwestern Bell Corp. ST: Georgia, Missouri IN: TLS SU: RTG

CK -- NY089 -- 1447 12/07/93 16:57 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 7, 1993
Words:421
Previous Article:ALPHA 1 ANNOUNCES COMPLETION OF STOCK SALE
Next Article:DUFF & PHELPS: MBNA MASTER CREDIT CARD TRUST SERIES 1993-4 $1,000,000,000 FLOATING RATE ASSET BACKED CERTIFICATES RATED 'AAA'
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters