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ITT CORP., UNITS $7 BIL SR DEBT RATED 'A+', CP 'F-1' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, July 8 /PRNewswire/ -- ITT Corp.'s (NYSE: ITT) $1.9 billion senior debt is rated `A+' by Fitch. Its $681 million cumulative preferred stock is rated `A' and $255 million 3(A)3 commercial paper is rated `F-1'. ITT Rayonier Inc.'s $110 million of notes and its medium term note program is rated `A+'. This is the first time Fitch has been asked to rate ITT Corp. debt. ITT Financial Corp.'s $5 billion `A+' senior debt and $2.5 billion `F-1' 3(A)3 commercial paper program are affirmed. ITT Corp.'s credit trend is stable while ITT Financial's trend is improving.
 The ratings are supported by ITT's broad diversification from manufacturing and natural resources to insurance and financial services, affording the company superior financial flexibility. ITT manages its balance sheet conservatively, maintaining modest financial leverage despite several major one-time events in 1992. This was accomplished by the sale of ITT's investment in Alcatel N.V. which will generate a total of $3.6 billion in proceeds. Approximately $1.5 billion of these proceeds were used to inject capital into ITT Hartford and ITT Financial to offset their one-time charges and to support a share repurchase program. Mitigating factors include weak operating results as almost every business unit had a restructuring charge in 1992, the impact of the prolonged recession on several key areas, and the depth of the underwriting cycle which continues to pressure Hartford Fire's results.
 ITT Corp. has a diverse portfolio of independent businesses with good market positions and high realizable values. Major operations include ITT Hartford, which accounts for approximately half of consolidated revenues and normal operating earnings, ITT Financial, ITT Automotive, ITT Rayonier, ITT Sheraton, ITT Communications and Information Services, ITT Defense & Electronics and ITT Fluid Technology.
 As a result of unprecedented restructuring charges in insurance and finance, a FAS #106/112 accounting charge, and weakness in certain other core operations, ITT reported approximately $3.0 billion in pretax charges in 1992. Combined with the effects of a share repurchase program and other items, leverage, excluding finance and insurance debt, increased modestly to 36.7 percent at year-end 1992 from 31.1 percent a year earlier. ITT's ability to service its debt is quite strong. Excluding insurance and finance, average annual debt maturities of $320 million are covered almost two times by operating cash flow after dividend payments.
 Fitch anticipates ITT's operating performance and cash flow to improve significantly in 1993. The company is expected to continue acquiring treasury stock, having spent some $223 million in 1992. However, the pace of treasury stock activity is not expected to cause leverage to increase above the targeted approximately 35 percent debt to total capital levels.
 -0- 7/8/93
 /CONTACT: Nancy Stroker, 212-908-0533, or Thomas W. Hoens, 212-908-0569, both of Fitch/
 (ITT) CO: ITT Corp. ST: New York IN: SU: RTG


MP -- NY050 -- 9484 07/08/93 12:05 EDT
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Date:Jul 8, 1993
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