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DUFF & PHELPS CREDIT RATING REMOVES U S WEST, INC., U S WEST CAPITAL FUNDING, AND U S WEST FINANCIAL SERVICES FROM RATING WATCH-DEVELOPING

 CHICAGO, July 29 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has removed the securities of U S WEST, Inc. (USW), U S WEST Capital Funding (USW-CF), and U S WEST Financial Services (USW-FS) from Rating Watch - Developing. The guaranteed notes of USW-CF and the medium-term notes of USW-FS are reaffirmed at "A+" (Single-A-Plus). The subordinated liquid yield option notes (LYONs) of USW are reaffirmed at "A" (Single-A).
 The securities of USW, USW-CF, and USW-FS were placed on the Rating Watch with USW's announcement of plans to invest $2.5 billion for a 26 percent interest in Time Warner Entertainment (TWE). Duff & Phelps has removed these securities from the Rating Watch as a result of the agreement by NationsBank to acquire from USW-FS $2.3 billion in net receivables and, separately, USW's commitment to a sizable secondary equity offering later in 1993. Proceeds will be used to fund the planned investment in TWE.
 The sale to NationsBank is part of USW's strategy to exit financial services businesses. USW has previously announced plans to sell its insurance investment and commercial real estate operations. The combination of these sales and the investment in TWE will result in a lower overall business risk profile for USW. The debt of USW-FS will remain outstanding to maturity (short to intermediate term) and will continue to be supported by USW. Upon completion of the NationsBank and TWE transactions and the planned sale of equity, USW will have a lower debt ratio and higher interest coverage. Although TWE has a significant debt load, USW has assumed no liability for this debt. The reaffirmation of the ratings of the securities of USW, USW-CF, and USW-FS anticipates the successful completion of the planned asset sale and equity offering. Should these transactions not occur, Duff & Phelps will re-examine these ratings.
 U S WEST, Inc., through U S WEST Communications, provides local telecommunications services to 13.5 million access lines in a 14 state region in the western United States. Other U S WEST subsidiaries are engaged in directory publishing, paging, cellular communications, and financial services businesses in the United States, and the cable TV and cellular communications businesses internationally.
 -0- 7/29/93
 /CONTACT: James J. Stork, CFA, 312-368-3125, of Duff & Phelps Credit Rating Co./
 (USW)


CO: U S WEST, Inc. ST: IN: TLS SU: RTG

LG -- NY054 -- 7495 07/29/93 11:59 EDT
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Publication:PR Newswire
Date:Jul 29, 1993
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