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DUFF & PHELPS: BELLSOUTH TELECOMMUNICATIONS, INC. $1 BILLION DEBT SECURITIES (SHELF) RATED 'AAA'

 CHICAGO, Aug. 18 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of "AAA" (Triple-A) to BellSouth Telecommunications, Inc.'s (BST) shelf registration for up to $1 billion of debt securities. Proceeds will be used to refinance debt and for general corporate purposes. Coupled with previous filings, BST has a total of $1.48 billion available for sale under shelf registration.
 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 have benefited from good volume and revenue growth, reductions in wage and salary expenses due to employee reductions, and lower interest expense related to refinancing of higher cost debt. Further, while aggressive depreciation programs have lowered reported earnings, they have provided internally generated funds which have enabled BST to finance its capital expenditures with modest additional debt.
 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- 8/18/93
 /CONTACT: James J. Stork, CFA, Duff & Phelps Credit Rating Co., 312-368-3125/
 (BLS)


CO: BellSouth Telecommunications, Inc. ST: Georgia IN: TLS SU: RTG

LG -- NY048 -- 3965 08/18/93 14:15 EDT
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Publication:PR Newswire
Date:Aug 18, 1993
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