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GEORGIA-PACIFIC DEBENTURES RATED 'BBB-' BY DUFF & PHELPS

 GEORGIA-PACIFIC DEBENTURES RATED 'BBB-' BY DUFF & PHELPS
 NEW YORK, Nov. 25 /PRNewswire/ -- Georgia-Pacific Corp.'s planned offering of $250 million of debentures, scheduled for this week, has been rated "BBB-" (Triple-B-Minus) by Duff & Phelps Credit Rating Co. The investment grade rating is based on the company's strong operating cash flow and Duff & Phelps' expectations that financial leverage will be reduced in coming years.
 Through the 1990 acquisition of Great Northern Nekoosa, the company expanded its share in the pulp and paper segment. The very low variable production costs that result from not only a dominant market presence, but also capital spending that has kept facilities highly competitive, allow for positive cash flow even in this difficult recessionary environment.
 In the building products segment, Georgia-Pacific is experiencing sound operating performance despite continued sluggishness in the construction industry. Environmental issues pressuring capacity in the Northwest have been advantageous. Refinements in operating strategy make the company less susceptible to inventory excesses and margin pressure.
 The company has the ability to generate sufficient cashflow to provide at least two times coverage of interest after deducting capital spending levels necessary to maintain its competitive advantages. The excess cash flow will be used to pare the overall debt load and support a reasonable common dividend program.
 Duff & Phelps' analysis points to gradual strengthening of Georgia Pacific's credit protection measures with the caveat that share repurchases or large acquisitions would hinder the extent of overall improvement.
 -0- 11/25/91
 /CONTACT: Daniel J. Donoghue, 212-908-0200, or W. Dudley Heer, 312-368-3123, or (for a more detailed report on this rating) Linda Peart 312-368-3114, all of Duff & Phelps/
 (GP) CO: Georgia-Pacific Corp. ST: Georgia IN: PAP SU: RTG


TS -- NY025 -- 6742 11/25/91 10:15 EST
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Publication:PR Newswire
Date:Nov 25, 1991
Words:288
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