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D&P RATES DIAMOND STATE TELEPHONE COMPANY $20 MILLION 7 PERCENT DEBENTURES 12/1/2023, $20 MILLION 6-1/8 PERCENT DEBENTURES DUE 12/1/2003

 CHICAGO, Dec. 3 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned ratings of 'AAA' (Triple-A) to The Diamond State Telephone Company's (DST) offering of $20 million 7 percent debentures due Dec. 1, 2023, and $20 million 6-1/8 percent debentures due Dec. 1, 2003. The 7 percent debentures are non-callable for 20 years and the 6-1/8 percent debentures are non-callable. Proceeds will be used to refinance debt.
 Diamond State Telephone maintains superior measures of financial protection including excellent pretax coverage of interest expense, good internal funds generation, and a conservative capital structure. Additionally, DST has the lowest operating cost structure in the industry, a reflection of its densely populated service territory, and a highly productive workforce. Interest expense should remain stable in 1994 since no new debt should be needed to fund DST's construction program. Longer term, aggressive plans to construct a broadband network could put pressure on DST's currently very strong credit profile.
 Diamond State Telephone provides local telecommunications services throughout the state of Delaware. Local services provided 43 percent of 1992 revenues, long distance network access services 26 percent, toll services 15 percent, and directory advertising and other services 16 percent. Diamond State Telephone is a wholly owned subsidiary of Bell Atlantic Corporation.
 -0- 12/3/93
 /CONTACT: James J. Stork, CFA of Duff & Phelps Credit Rating Co., 312-368-3125/


CO: The Diamond State Telephone Company ST: Delaware IN: TLS SU: RTG

WB -- NY077 -- 0428 12/03/93 17:46 EST
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Date:Dec 3, 1993
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