Printer Friendly

DUFF & PHELPS RATES GEORGIA-PACIFIC CORPORATION'S $250 MILLION 30-YEAR DEBENTURES 'BBB-'

 CHICAGO, Feb. 26 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of BBB-' (Triple-B Minus) to Georgia-Pacific Corporation's $250 million 8.25 percent debentures due March 1, 2023. This rating is identical to the present rating of Georgia-Pacific's senior unsecured debt. Proceeds will be used for general corporate purposes.
 The rating reflects the excellent cash flow generating ability of Georgia-Pacific's core assets, balanced against the company's penchant for financial leverage to effect acquisitions and share repurchases. Since peaking at approximately $8.0 billion following the 1990 merger with Great Northern Nekoosa, fixed obligations have been reduced to $6.5 billion or 71 percent of total capital at Sept. 30, 1992. However, the company remains highly financially leveraged, and further debt reduction is uncertain as cash may be applied toward share repurchases and/or acquisitions.
 Georgia-Pacific's business strategy emphasizes the operation of large-scale, highly efficient mills. The company's low variable cost position helps mitigate industry-wide pricing pressures arising from current economic conditions and excess capacity in many pulp and paper grades. The favorable cost position is also derived from its timber resource base, located in the southeastern United States, which offers a relatively low-cost and abundant fiber source. Nonetheless, the business segments are highly cyclical; with wood products demand dependent on new construction activity, and the pulp and paper segments dependent upon general business conditions and capacity growth.
 -0- 2/26/93
 /CONTACT: Doris S. Nakamura of Duff & Phelps Credit Rating Co., 312-368-3130/
 (GP)


CO: Georgia-Pacific Corporation ST: Georgia IN: PAP SU: RTG

CK -- NY027 -- 0822 02/26/93 11:43 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:Feb 26, 1993
Words:263
Previous Article:DUFF & PHELPS: MISSISSIPPI POWER COMPANY $35 MILLION FIRST MORTGAGE BONDS RATED 'A+'
Next Article:DUFF & PHELPS: NEW JERSEY BELL TELEPHONE COMPANY $100 MILLION 7-1/4 PERCENT DEBENTURES DUE 2023 RATED 'AAA'
Topics:


Related Articles
GEORGIA-PACIFIC DEBENTURES RATED 'BBB-' BY DUFF & PHELPS
DUFF & PHELPS ASSIGNS RATING OF 'BBB-' TO THE WILLIAMS COMPANIES NORTHWEST PIPELINE RATED 'BBB'
DUFF & PHELPS RATES TELE-COMMUNICATIONS, INC.'S NEW ISSUES 'BBB-'
DUFF & PHELPS UPGRADES DUQUESNE LIGHT COMPANY SENIOR DEBT TO 'A-'
DUFF & PHELPS UPGRADES BOSTON EDISON COMPANY DEBENTURES/MEDIUM-TERM NOTES TO 'BBB+'
DUFF & PHELPS RATES $250 MILLION CHRYSLER FINANCIAL NOTES
? DUFF & PHELPS: NEW YORK TELEPHONE COMPANY $250 MILLION 7 PERCENT DEBENTURES DUE 2025 RATED 'A'
NEW ENGLAND TELEPHONE AND TELEGRAPH COMPANY $250 MILLION DEBENTURES RATED 'AA,' $100 MILLION DEBENTURES RATED 'AA' BY DUFF & PHELPS
DUFF & PHELPS UPGRADES GEORGIA-PACIFIC TO 'BBB'
DUFF & PHELPS REAFFIRMS GEORGIA-PACIFIC'S DEBT RATINGS

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