Printer Friendly

DUFF & PHELPS: SOUTHWESTERN BELL TELEPHONE $200 MILLION 6 3/8 PERCENT NOTES DUE 2001 RATED 'A+'

 -- $150 Million 6 5/8 Percent Notes Due 2005 Rated `A+' --
 CHICAGO, March 31 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `A+' (Single-A-Plus) to Southwestern Bell Telephone's (NYSE: SBC) (SWBT) $200 million issue of 6 3/8 percent notes due April 1, 2001, and its $150 million issue of 6 5/8 percent notes due April 1, 2005. The 6 3/8 percent notes were priced at 99.90 to yield 6.39 percent to maturity. The 6 5/8 percent notes were priced at 99.33 to yield 6.71 percent to maturity. Both issues are noncallable. In addition to issuances from a medium-term note program, proceeds will be used to refinance its $150 million 8 1/4 percent notes due 2005 and its $300 million 8 3/4 percent notes due 2024.
 Southwestern Bell Telephone demonstrates good pretax interest coverage, funds its construction expenditures largely through internal funds, and has a moderate debt ratio. Pretax interest coverages are expected to improve modestly in 1993 as a result of revenues from new services and continued operating expense controls. The Oklahoma rate proceeding remains the major uncertainty. The Oklahoma Corporation Commission has issued an order calling for SWBT to lower revenues by $93 million and refund $148 million to customers. The company has appealed this decision to the Oklahoma Supreme Court. Southwestern Bell Telephone is on the threshold of stronger expected financial performance. Continued expense control and maintenance of margins in competitive services will be key factors.
 Southwestern Bell Telephone provides local telecommunications services to 12.8 million access lines in Texas (57 percent of lines), Missouri (17 percent), Oklahoma (11 percent), Kansas (9 percent), and Arkansas (6 percent). The company is a wholly owned subsidiary of Southwestern Bell Corporation.
 -0- 3/31/93
 /CONTACT: James J. Stork, CFA of Duff & Phelps Credit Rating Co., 312-368-3125/
 (SBC)


CO: Southwestern Bell Telephone Company ST: Missouri IN: TLS SU: RTG

TM -- NY076 -- 1717 03/31/93 17:16 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 31, 1993
Words:331
Previous Article:LOEWS CORPORATION $1 BILLION SHELF SENIOR DEBT RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
Next Article:DUFF & PHELPS: DUKE POWER CO. FI ?AND REFUNDING MORTGAGE BONDS AND FIRST AND REFUNDING MORTGAGE BONDS, MEDIUM-TERM NOTE SERIES RATED 'AA-'
Topics:


Related Articles
DUFF & PHELPS: SOUTHWESTERN BELL TELEPHONE $200 MILLION 7-5/8 PCT. NOTES DUE 2023 RATED 'A+'; $150 MILLION 6-1/8 PCT. NOTES DUE 2000 RATED 'A+'
THE BELL TELEPHONE COMPANY OF PENNSYLVANIA $225 MILLION 7-3/8 PERCENT DEBENTURES DUE 2033 RATED 'AA+'
DUFF & PHELPS: THE BELL TELEPHONE COMPANY OF PENNSYLVANIA $150 MILLION 6-1/8 PERCENT DEBENTURES DUE 2003 RATED 'AA+'
DUFF & PHELPS: CHESAPEAKE & POTOMAC TELEPHONE COMPANY OF MARYLAND $200 MILLION SIX PERCENT DEBENTURES DUE 2003 RATED 'AA'
DUFF & PHELPS RATES BELLSOUTH TELECOMMUNICATIONS, INC. DEBENTURES AND NOTES 'AAA'
DUFF & PHELPS: SOUTHWESTERN BELL TELEPHONE COMPANY $250 MILLION 7 PERCENT DEBENTURES DUE 2015 RATED 'A+'
DUFF & PHELPS: SOUTHWESTERN BELL TELEPHONE COMPANY $150 MILLION 7 1/4 PERCENT DEBENTURES DUE 2025 RATED 'A+'
DUFF & PHELPS: NEW YORK TELEPHONE COMPANY $100 MILLION 5 1/4 PERCENT NOTES DUE 1998 RATED 'A'
DUFF & PHELPS CREDIT RATING COMPANY RAISES RATING OF SOUTHWESTERN BELL TELEPHONE COMPANY
DUFF & PHELPS: GTE NORTHWEST INCORPORATED $200 MILLION 7-3/8 PERCENT DEBENTURES DUE 2001 RATED 'A'

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters