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DUFF & PHELPS: BELLSOUTH TELECOMMUNICATIONS, INC. $750 MILLION DEBENTURES RATED 'AAA'

 CHICAGO, Oct. 11 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `AAA' (Triple-A) to BellSouth Telecommunications, Inc.'s (BST) two-part issuance of $350 and $400 million, respectively, of debentures. The $350 million 5-7/8 percent issue is due Jan. 15, 2009, and was priced at 99.839 to yield 5.89 percent. The $400 million 6-3/4 percent issue is due Oct. 15, 2033, and was priced at 98.5 to yield 6.86 percent. The 15-year issue is non-callable prior to maturity and the 40-year issue is non-callable for 10 years. Proceeds will be used to refinance higher cost debt.
 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 (NYSE: BLS), providing over 85 percent of BellSouth's revenues and nearly all of its net income.
 -0- 10/11/93
 /CONTACT: James J. Stork, CFA, of Duff & Phelps Credit Rating Co., 312-368-3125/
 (BLS)


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

MP -- NY039 -- 0750 10/11/93 15:13 EDT
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Publication:PR Newswire
Date:Oct 11, 1993
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