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K N ENERGY PROPOSED $65 MILLION DEBT RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --

 K N ENERGY PROPOSED $65 MILLION DEBT RATED 'A' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Sept. 4 /PRNewswire/ -- K N Energy, Inc.'s (KNE) two proposed debt offerings totaling $65 million are rated 'A' by Fitch. The company's outstanding 'A' sinking fund debentures, 'A' preferred stock, and 'F-1' commercial paper are affirmed. The credit trend is improving.
 Despite recent seasonal softness in energy demand due to mild weather, Fitch expects KNE's operating and financial performance to continue the improvement experienced in recent years, which culminated this past April in upgrades to the present rating levels.
 Management has successfully reduced business risk and positioned the company to compete more effectively. The 1991 sale of coal operations and a renewed focus on the core natural gas business will result in generally stronger and more predictable credit fundamentals in the future. Pretax interest coverage increased to 3.05 times(x) in 1991 from 2.79x in 1990 and 2.54x in 1989. Further moderate improvement is expected over the next several years. Moreover, KNE's balance sheet is considerably stronger than it was in the late 1980s when common equity was less than 40 percent of capitalization. At June 30, 1992, total equity was a healthy 55.7 percent of capitalization (51.5 percent common and 4.2 percent preferred), with total debt a reasonable 44.3 percent of capitalization.
 Looking ahead, management is committed to maintaining a conservative financial profile. Increased throughput should result from ongoing system enhancements and aggressive marketing.
 A recently negotiated settlement should end gas purchase contract litigation with Freeport-McMoran, Inc. and Teachers Insurance and Annuity Association. Court approval of the settlement is pending. The settlement is not expected to have any material negative impact on KNE's financial position.
 -0- 9/4/92
 /CONTACT: Ralph Pellecchia, 212-908-0586, or William Stellenwerf, 212-908-0558, both of Fitch/
 (KNE) CO: K N Energy, Inc. ST: IN: OIL SU: RTG


CK -- NY035 -- 6932 09/04/92 12:26 EDT
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Publication:PR Newswire
Date:Sep 4, 1992
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