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MCI DEBT REMAINS ON FITCHALERT POSITIVE AFTER ANNOUNCEMENT -- FITCH FINANCIAL WIRE --

 NEW YORK, Jan. 4 /PRNewswire/ -- MCI Communications Corp.'s 'A-' rated debentures remain on FitchAlert positive following today's announcement of two strategic initiatives. The initiatives will help MCI maintain its financial and operating strength. By improving its competitive position and setting the stage for lower access costs, MCI is positioning itself as the low cost, high-value, preferred vendor of long distance service. This strategy will help strengthen credit quality.
 Fitch's review will focus on the balance sheet impact of the capital spending associated with these initiatives, and the nature and composition of the financing for the proposed capital spending. MCI has considerable access to capital from its alliance with British Telecommunications, plc. (BT) MCI's near-term capital needs will be met from existing cash, strong operating cash flows, and agreed-upon equity investment from BT. BT has already invested $830 million for 5% of MCI, and is scheduled to invest $3.4 billion for an additional 15% ownership by mid-1994. MCI also plans to establish additional strategic alliances in order to share the capital spending burden requirements with partners.
 MCI today announced the creation of MCI Metro, a wholly owned subsidiary that will invest $2 billion in fiber rings and local switching infrastructure in major U.S. cities. This effort will allow MCI to connect directly to its customers, thereby avoiding the expense of paying access fees to local telephone companies. These access fees represent more than 60% of its operating expenses and are equal to about 45% of revenues. Therefore, a decisive strategy to reduce these fees will significantly impact MCI's financial performance and credit quality. In addition, the direct connection to the customer will allow MCI to establish and maintain contact with the end user, offer additional services, and control the range and quality of services.
 MCI's other initiative, to market its SONET (Synchronous Optical Network) high speed transmission capability, will position the company as the preferred provider of high speed long distance service. SONET will be available throughout MCI's domestic network by the end of 1994, and will be expanded internationally in 1995.
 -0- 1/4/94
 /CONTACT: Timothy Cain of Fitch, 212-908-0587/
 (MCIC)


CO: MCI Communications Corp. ST: IN: TLS SU: RTG

WB -- NY055 -- 9057 01/04/94 17:16 EST
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Date:Jan 4, 1994
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