DUFF & PHELPS UPGRADES DRESSER INDUSTRIES RATING TO 'A+'
CHICAGO, April 7 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has raised the rating on the outstanding senior debt of Dresser Industries to `A+' (Single-A-Plus) from `A' (Single-A). The commercial paper rating is reaffirmed at Duff 1. About $27 million of securities are affected. The rating is also extended to Dresser's $400 million shelf registration under Rule 415. The rating upgrade reflects the positive benefits from Dresser's recently completed restructuring which entailed the divestiture of non- core businesses. Dresser is now focused solely on supplying specialized products and services to the oil and gas industry, from the exploration and production segment (upstream) to the processing or conversion of oil, gas and coal to value-added energy forms (downstream). Additionally, the majority of Dresser's revenues are now derived from higher-margin international markets, and its exposure to currently weak domestic oil and gas markets has been reduced. With the elimination of underperforming businesses, including the spin-off to shareholders of its industrial products and equipment business, aggressive cost containment efforts and a new focus on oil and gas industry customers, credit protection measures should improve from historical levels. Dresser is conservatively financed with fixed obligations accounting for roughly 20 percent of total capitalization. Liquidity is good with over $140 million of cash and equivalents on its balance sheet at January 31, 1993. Total debt at January 31 was $135.9 million. The rating assumes that Dresser will continue to make small niche acquisitions, to fill product lines or to complement core businesses. -0- 4/7/93 /CONTACT: David W. Eisinger, CFA of Duff & Phelps Credit Rating Co., 312-368-3145/ (DI)
CO: Dresser Industries ST: Texas IN: OIL SU: RTG
LR -- NY031 -- 3748 04/07/93 11:16 EDT
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|Date:||Apr 7, 1993|
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