D&P: BELLSOUTH TELECOMMUNICATIONS $500 MILLION 5-1/4 PERCENT EUROBONDS DUE 1998 RATED 'AAA'; $800 MILLION DEBT SECURITIES (SHELF) RATED 'AAA'
CHICAGO, May 12 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `AAA' (Triple-A) to BellSouth Telecommunications, Inc.'s (BST) $500 million offering of 5-1/4 percent Eurobonds, due June 8, 1998. The bonds are being reoffered to investors at 99.58 to yield 5.35 percent to maturity. Separately, Duff & Phelps Credit Rating Co. has assigned a rating of `AAA' (Triple-A) to BST's shelf registration for $800 million principal amount of debt securities. This filing joins previously registered securities to bring the shelf total to $975 million. 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. Aggressive depreciation programs have lowered reported earnings. However, resulting internally generated funds have enabled BST to finance its capital expenditures with only 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- 5/12/93 /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
WB -- NY094 -- 7721 05/12/93 16:09 EDT
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|Date:||May 12, 1993|
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