Printer Friendly

DURACELL INC.'S COMMERCIAL PAPER PROGRAM RATED 'F-1' BY FITCH -- FITCH FINANCIAL WIRE --

 DURACELL INC.'S COMMERCIAL PAPER PROGRAM RATED 'F-1' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Oct. 21 /PRNewswire/ -- Duracell, Inc.'s 3(a)3 commercial paper program is rated 'F-1' by Fitch. Approximately $116 million is currently outstanding. This is the first time Fitch has rated Duracell.
 Duracell, Inc. is the U.S. operating subsidiary of Duracell International, Inc., which unconditionally guarantees the commercial paper.
 The rating is based on the company's leading market position in a growing industry, strong worldwide brand franchise, significantly reduced debt levels, and robust operating cash flow.
 Duracell leads the U.S. alkaline battery market with a 47 percent share and holds a 41 percent share of the world alkaline battery market. Alkaline batteries represent approximately 75 percent of all batteries sold in the U.S. and approximately 41 percent of the worldwide market in which Duracell competes. While the growth in alkaline market share penetration is expected to slow domestically, this should be more than offset by international growth. With the introduction of high power rechargeable batteries for portable devices such as cellular phones, laptop computers and camcorders, Fitch views the prospects for continued overall growth in the battery market favorably.
 Since its June 1988 acquisition from Kraft by Kohlberg, Kravis & Roberts, Duracell has reduced total debt from $1.6 billion to its current $734 million as a result of two public common stock issues and strong cash flow from operations. Although the reported debt to total capital is considered high for this rating category, at 42 percent; total debt represents only a modest 1.9 times operating cash flow. In addition, cash flow coverage of interest would have been a substantial 6.5 times in 1992 after adjusting for the new capital structure.
 Another important rating consideration is Duracell's recently announced four million common share repurchase plan which, at current market prices, represents an approximately $128 million commitment. While Fitch will continue to monitor activity under this program, there does appear to be more than sufficient cash flow available for repurchase activity given Duracell's modest overall capital expenditure, working capital, and scheduled debt service requirements.
 Duracell International, Inc. headquartered in Bethel, Conn., manufactures and markets high performance alkaline and specialty batteries on a worldwide basis primarily under the DURACELL trademark.
 -0- 10/21/92
 /CONTACT: Anne Marie May of Fitch, 212-908-0589/
 (DUR) CO: Duracell, Inc. ST: Connecticut IN: HOU SU: RTG


AH -- NY082 -- 2935 10/21/92 13:24 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 21, 1992
Words:407
Previous Article:TRIBUNE REPORTS THIRD QUARTER; NINTH PERIOD OPERATING DATA
Next Article:AMERICA FIRST FINANCIAL FUND 1987-A ANNOUNCES EARNINGS
Topics:


Related Articles
OXFORD FINANCE CO., INC. COMMERCIAL PAPER PROGRAM RATING WITHDRAWN BY FITCH -- FITCH FINANCIAL WIRE --
MASSACHUSETTS $400 MILLION COMMERCIAL PAPER RATED 'F-1+' BY FITCH -- FITCH FINANCIAL WIRE --
IDAHO HOUSING AGENCY COMMERCIAL PAPER PROGRAM RATED 'F-1+' BY FITCH -- FITCH FINANCIAL WIRE --
S.C. JOHNSON SENIOR DEBT LOWERED TO 'A,' CP TO 'F-1' BY FITCH -- FITCH FINANCIAL WIRE --
MASSACHUSETTS $200 MILLION COMMERCIAL PAPER RATED 'F-1+' BY FITCH -- FITCH FINANCIAL WIRE --
DURACELL INC COMMERCIAL PAPER PROGRAM AFFIRMED 'F-1' BY FITCH -- FITCH FINANCIAL WIRE --
DURACELL 'F-1' $750 MILLION COMMERCIAL PAPER PROGRAM AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --
Fitch Affirms Duracell 'F-1' Rating on Merger with Gillette - Fitch Financial Wire -
Fitch Withdraws Duracell's Commercial Paper Program Rating -- Fitch Financial Wire --
Fitch IBCA Withdraws Reliance Acceptance Corp. Commercial Paper Rating - Fitch IBCA Financial Wire -

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