DUFF & PHELPS: NEW ENGLAND TELEPHONE AND TELEGRAPH COMPANY $100 MILLION 5-3/4 PERCENT NOTES DUE 2000 RATED 'AA'
CHICAGO, April 21 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `AA' (Double-A) to New England Telephone and Telegraph Company's $100 million offering of 5-3/4 percent notes. The non-callable notes were priced at 99.545 to yield 5.83 percent to maturity. New England Telephone has maintained strong credit protection measures in spite of the protracted economic decline in the Northeast. The company has maintained a conservative capital structure and pretax interest coverages in excess of 4.0 times. Earnings and cash flow have been pressured in recent years by increased competition, the recession, and higher debt levels to finance construction spending. However, New England Telephone has successfully offset these pressures by cost savings from early retirement offers and the refinancing of high coupon debt. Importantly, New England Telephone's parent, NYNEX, has made annual equity infusions into New England Telephone to maintain a stable capital structure. Additionally, New England Telephone has demonstrated a commitment to continued cost-cutting efforts. New England Telephone and Telegraph, a subsidiary of NYNEX Corporation, provides local telecommunications services in the upper New England area. The company serves 5.7 million access lines in the five state area of Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. -0- 4/21/93 /CONTACT: James J. Stork, CFA of Duff & Phelps Credit Rating Co., 312-368-3125/ (NYN)
CO: New England Telephone and Telegraph Company ST: IN: TLS SU: RTG
WB -- NY117 -- 9012 04/21/93 17:22 EDT
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|Date:||Apr 21, 1993|
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