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DUFF & PHELPS RATES THE KENDALL COMPANY'S PROPOSED $100 MILLION ISSUE OF SENIOR SUBORDINATED NOTES DUE 2003 'BB+'

 NEW YORK, April 29 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a `BB+' (Double-B-Plus) to The Kendall Company's proposed offering of $100 million of senior subordinated notes due 2003.
 The Duff & Phelps rating reflects the financial restructuring completed by Kendall in mid-1992, which resulted in sharply reduced debt levels and interest expense. Although the reorganization required confirmation by a U.S. Bankruptcy Court, Kendall's new capital structure should enable it to compete effectively while providing adequate debt service. The restructuring resulted in a debt reduction of over $400 million and a new equity infusion of approximately $112 million. Pro forma for the issuance of the senior subordinated notes and adjusting for the reorganization, total debt/EBITDA would have been 2.8 times and fixed charges would have been covered 3.5 times in 1992.
 The `BB+' rating also reflects Kendall's strong position in wound care products in the U.S. hospital industry and its leading positions in niche markets, improved financial flexibility, and the company's expected ability to meet budgeted capital needs and mandatory debt retirement with internally generated cash flow.
 Key risks include competition from sizable companies, such as, Johnson & Johnson and Baxter International, hospital utilization in the future, and continuing pricing pressures throughout the health care industry.
 Kendall's principal products include disposable medical supplies and devices marketed to hospitals and alternate health care facilities, home health care products sold to pharmacies and other retail outlets, and adhesive products and tapes for health care, consumer and industrial applications.
 -0- 4/29/93
 /CONTACT: Thomas P. Razukas, CFA of Duff & Phelps Credit Rating Co., 212-908-0200/


CO: The Kendall Company ST: IN: HEA SU: RTG

LR -- NY054 -- 2602 04/29/93 11:16 EDT
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Publication:PR Newswire
Date:Apr 29, 1993
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