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GEORGIA-PACIFIC $500 MILLION SENIOR DEBT SHELF RATED 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --

GEORGIA-PACIFIC $500 MILLION SENIOR DEBT SHELF RATED 'BBB' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, June 23 /PRNewswire/ -- Georgia-Pacific Corp.'s $500 million shelf registration of senior debt securities is rated "BBB" by Fitch. The credit trend is improving.
 This represents Fitch's initial public rating of Georgia-Pacific's debt securities. The rating encompasses Georgia-Pacific's strong operating position and substantial cash flow generation ability while also recognizing the significant increase in debt used to finance the acquisition of Great Northern Nekoosa (GNN) in 1990. The company will use the proceeds of offerings under the shelf to reduce short-term borrowings and for other general corporate purposes including possible acquisitions, capital expenditures and retirement of debt and other obligations.
 The rating reflects strong market positions, good progress in refinancing debt, efficient operations, and an expectation of continuing improvement in operating and financial performance. Georgia Pacific holds the first or second major market positions in many of its product areas. Acquisition debt was reduced by $1.3 billion in 1991 using excess cash flow and proceeds from asset sales during a very difficult year for the industry. The company also has well maintained, efficient facilities, some of which are the lowest cost producers of their kind.
 With 143 distribution centers in 46 states, Georgia-Pacific is the leading wholesaler of building products in the U.S. It owns or controls approximately 6 million acres of timberland in the U.S. and Canada, most of which is located near its manufacturing facilities. Most (90%) of this timberland is located in the Southern and Eastern parts of the U.S., areas of which are not involved in the Spotted Owl controversy.
 GNN was a major strategic acquisition; the largest ever in the forest products industry. With little overlap in facilities, management has exceeded its $80 million goal in annual cost savings.
 Credit concerns include the cyclical nature of the industry, relatively high leverage, and pending lawsuits. Georgia-Pacific deals in commodity products. Numerous factors which affect selling prices, such as increased industry capacity, weak demand due to recession, low housing starts or high mortgage rates, are well outside its control.
 Despite the $1.3 billion 1991 debt reduction and the continuing ability to generate strong cash flows, the balance sheet remains quite leveraged with debt to capital in excess of 65 percent on a book basis. However, the market value


of the company's assets, including timberlands, is significantly higher than carrying value.
 Georgia-Pacific is involved in numerous dioxin lawsuits in Mississippi related to the alleged discharge of dioxin from the Leaf River bleached pulp mill. While the company believes it has meritorious defenses, the concern remains that the outcome or outcomes of these suits -- judgments, settlements and legal fees -- could have a significant financial impact.
 Started in 1927 as a wholesaler of hardwood lumber, Georgia-Pacific has a long history of growth through business expansions and acquisitions. The largest by far was the $3.7 billion acquisition of GNN. It is today a world class integrated manufacturer and distributor of pulp, paper and building products.
 -0- 6/23/92
 /NOTE TO EDITORS: For a copy of Fitch's research report, call Market Services or Janet Zimmerman, 800-75-FITCH.
 /CONTACT: Raymond T. Carty of Fitch, 212-908-0595/
 (GP) CO: Georgia-Pacific Corp. ST: Georgia IN: PAP SU: RTG


TS -- NY050 -- 2864 06/23/92 12:45 EDT
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Date:Jun 23, 1992
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