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DAL-TILE INTERNATIONAL $75 MILLION SENIOR SECURES ZERO COUPON NOTES RATED 'B-' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Aug. 2 /PRNewswire/ -- Dal-Tile International, Inc.'s proposed $75 million issue of senior secured zero coupon notes due 1998 is rated 'B-' by Fitch. The credit trend is uncertain.
 The rating reflects Dal-Tile's limited operating cash flow from its principal operating subsidiary, Dal-Tile Group, Inc., which is prohibited under its financing agreements from paying dividends to its parent. The rating also reflects the company's levered capital structure. Other factors include asset protection through a security interest in the company's equity in Dal-Tile Group, which had a book value of approximately $190 million at June 30, 1993, and Dal-Tile's ownership by AEA Investors, Inc.
 Dal-Tile Group is the largest manufacturer, distributor, and marketer of ceramic tile in North America and has a leading market share of the domestic ceramic tile market, which has been sluggish in recent years due to the slowdown in commercial and residential construction activity. Dal-Tile Group is a low-cost integrated manufacturer that distributes its products through approximately 200 company-owned sales centers in the U.S., Mexico, and Canada. Despite its tenuous financial position, Dal-Tile Group has aggressively added to its sales center network, expanding its reach into retail markets to mitigate the effects of sluggish construction activity.
 -0- 8/2/93
 /CONTACT: Donald H. Powell, 212-908-0570, or Scott O' Donnell, 212-908-0531, both of Fitch/


CO: Dal-Tile International, Inc. ST: IN: SU: RTG

SM -- NY087 -- 8431 08/02/93 14:13 EDT
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Publication:PR Newswire
Date:Aug 2, 1993
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