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GTE CORP.'S $500 MILLION DEBENTURES RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, April 29 /PRNewswire/ -- GTE Corp.'s $500 million 7.83 percent debentures due 2023 are rated `A' by Fitch. The rating reflects the company's reduced debt levels, solid operating results, and its focus on stable, higher-growth communications businesses. Proceeds from this issue will be used to pay down short-term debt. The credit trend is improving.
 GTE took a number of steps in 1992 to strengthen its balance sheet. The company used the proceeds of a $1.1 billion common stock offering in September 1992 to reduce debt. GTE raised additional cash in 1992 by selling its remaining interest in US Sprint, a joint venture with United Telecom (now Sprint Corp.). As a result of these transactions and ongoing improvement in operating results, GTE's year-end debt ratio was just under 60 percent. GTE also raised over $1 billion in first-quarter 1993 from the sale of its Electrical Products Group and is applying proceeds to reduce debt.
 The company is continuing its restructuring effort in 1993, with the sale of certain telephone properties in North Dakota and South Dakota. In addition, GTE has agreed to exchange its Georgia telephone operations for cash and ALLTEL Corp.'s Indiana, Michigan, and Illinois access lines.
 Profitability for 1992, as measured by return on average equity, was 16.8 percent before accounting changes. These solid operating results were sustained in first-quarter 1993, producing pretax interest coverage 3.6 times (x), compared with 2.8x in 1992. The company refinanced more than $2 billion in high-coupon debt over last 15 months, thereby lowering its interest costs and boosting interest coverage over the next several years.
 GTE's local telephone businesses still contribute about 80 percent of consolidated revenue and 95 percent of operating income. Operating results will reflect the above-average growth rates in access lines and minutes of use over the next several years. In first-quarter 1993, access lines increased 3.8 percent and minutes of use grew 9.2 percent. Fitch expects the company's local telephone operations to sustain solid, stable contribution to overall results.
 GTE's cellular operations, the nation's second largest, showed continued solid growth in first-quarter 1993, with a 24 percent increase in cellular service revenue over the same period in 1992. These operations are still developing and are not positioned to make a material near-term contribution to overall operating results.
 -0- 4/29/93
 /CONTACT: Timothy Cain of GTE Corp., 212-908-0587/
 (GTE)


CO: GTE Corp. ST: Connecticut IN: TLS SU: RTG

SM -- NY098 -- 2762 04/29/93 14:42 EDT
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Date:Apr 29, 1993
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