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ELECTRONIC DATA SYSTEMS COMMERCIAL PAPER PROGRAM RATED 'F-1' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, July 1 /PRNewswire/ -- Electronic Data Systems Corp.'s (EDS) $399 million outstanding commercial paper is rated 'F-1'. The program, initiated in May 1992, is 100% supported by a $400 million bank credit facility.
 The rating reflects EDS's broad customer base of long-term contracts, which affords it the financial strength and stability to be a leader in the fast-growing information technology marketplace. The rating also accounts for challenges of new and aggressive competitors and ownership by General Motors Corp. (GM). Fitch believes that GM's interests will be best served by allowing EDS to continue operating as a separate entity. However, GM could sell EDS, which may strengthen or weaken the company's credit quality.
 The most meaningful credit consideration for EDS is its capability to generate cash flow from operations (including the effects of changes in operating assets and liabilities) relative to debt. During 1992, EDS's ratio of cash flow to debt was 136.8 percent compared to 107.8 percent in 1991. Cash flow to debt ratios are reduced when the effects of capitalizing operating leases are included, but they remain very strong at 80.8 percent in 1992 and 81.0 percent in 1991. EDS's cash flow is more than adequate to service its dividend and capital expenditure requirements at 129.7 percent and 102.4 percent in 1992 and 1991, respectfully.
 EDS is the world leader in the application of information technology through its consulting, systems, and process management services. The aim is to help customers improve business performance, reduce operating costs, focus on core businesses, and improve competitive positions. Although the company operates in 30 countries, the focus is in the U.S. (77 percent of 1992 revenues) and Europe (17 percent). The company's primary market sectors are manufacturing (33 percent of 1992 revenues), international (23 percent), government (12 percent), financial/insurance (16 percent), and other (16 percent).
 -0- 7/1/93 R
 /CONTACT: Donald H. Powell, 212-908-0570, or Thomas W. Hoens, 212-908-0569, both of Fitch/


CO: Electronic Data Systems Corp. ST: IN: CPR SU: RTG

SM -- NY024R -- 7641 07/01/93 10:58 EDT
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Publication:PR Newswire
Date:Jul 1, 1993
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