Printer Friendly

DUFF & PHELPS REAFFIRMS RATINGS OF CENTEL AND CENTEL CAPITAL

 CHICAGO, March 25 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has reaffirmed the ratings of the fixed income securities of Centel Corporation and Centel Capital Corporation. The notes and debentures of Centel and Centel Capital are reaffirmed at `BBB-' (Triple-B-Minus) and Centel's preferred stock is reaffirmed at `BB+' (Double-B-Plus). Centel unconditionally guarantees the payment of principal and interest on the Centel Capital debt. With this action, these securities are removed from the Duff & Phelps Rating Watch--Favorable.
 The fixed income securities of Centel and Centel Capital were placed on the Rating Watch--Favorable/Unfavorable in January 1992, when the company indicated that it was exploring various strategic alternatives to maximize shareholder value. Following the announcement that Centel had reached an agreement with Sprint Corporation to merge the two companies in a stock-for-stock exchange, the Rating Watch--Unfavorable designation was removed pending further analysis of the effect of merging with stronger credit Sprint (rated `BBB'). The merger was completed on March 9, 1993. However, Centel and Centel Capital will remain separate legal entities under the Sprint holding company. The debt of Centel and Centel Capital will continue to be supported only by the cash flow and assets of Centel, consisting of its telephone and cellular subsidiaries. Sprint has not assumed nor agreed to support the debt of Centel or Centel Capital. As a result, there is no credit enhancement to the Centel companies at this time, and Duff & Phelps Credit Rating Co. is reaffirming the ratings of Centel and Centel Capital at their current levels.
 Centel operates the fourth largest non-Bell telephone system in the U.S., serving 1.6 million access lines in six states. Centel's rapidly growing cellular properties serve more than 350,000 customers in areas populated by 17 million people.
 -0- 3/25/93
 /CONTACT: James J. Stork, CFA of Duff & Phelps Credit Rating Co., 312-368-3125/
 (CNT)


CO: Centel Corporation; Centel Capital Corporation ST: Illinois IN: TLS SU: RTG

WB -- NY080 -- 9788 03/25/93 16:45 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 25, 1993
Words:327
Previous Article:DUFF & PHELPS: SOUTHERN INDIANA GAS & ELECTRIC COMPANY $175 MILLION FIRST MORTGAGE BONDS AND PREFERRED STOCK (SHELF) RATED 'AA' AND 'AA-'
Next Article:U.S. ROBOTICS ACQUIRES FRANCE'S P.N.B., s.a.
Topics:


Related Articles
CENTEL ANNOUNCES QUARTERLY DIVIDEND
CENTEL UNIT TO REDEEM FIRST MORTGAGE BONDS
CENTEL ANNOUNCES QUARTERLY DIVIDEND
CENTEL ANNOUNCES QUARTERLY DIVIDEND
CENTEL ANNOUNCES QUARTERLY DIVIDEND
DUFF & PHELPS CREDIT RATING CO. REAFFIRMS RATINGS OF GTE HAWAIIAN TELEPHONE COMPANY INC.
CENTEL ANNOUNCES DIVIDEND
DUFF & PHELPS: UNITED TELEPHONE COMPANY OF FLORIDA $70 MILLION 6 1/4 PERCENT FIRST MORTGAGE BONDS DUE 2003 RATED 'AA-'
DUFF & PHELPS CREDIT RATING CO. REAFFIRMS NINE TELECOMMUNICATIONS COMPANIES FOLLOWING PCS AUCTION

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters