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NEW ENGLAND TELEPHONE AND TELEGRAPH COMPANY $250 MILLION DEBENTURES RATED 'AA,' $100 MILLION DEBENTURES RATED 'AA' BY DUFF & PHELPS

 CHICAGO, Sept. 21 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of "AA"' (Double-A) to New England Telephone and Telegraph Company's issuance of $250 million of 6-7/8 percent debentures due Oct. 1, 2023, and $100 million 5.05 percent debentures due Oct. 1, 1998. The 6-7/8 percent debentures were priced at 98.624 to yield 6.985 percent and the 5.05 percent debentures were priced at 99.781 to yield 5.1 percent.
 New England Telephone has maintained strong credit protection measures in spite of the protracted economic decline in the Northeast. The company has a conservative capital structure and pretax interest coverages in excess of 4.0 times. Earnings and cash flow have been pressured in recent years by increased competition, the recession, and higher debt levels to finance construction spending. However, New England Telephone has successfully offset these pressures through cost savings from early retirement offers and the refinancing of high coupon debt. Additionally, access revenues are expected to increase over the next few years as a result of a net interstate rate increase due to the company's unification of access rates with New York Telephone. Importantly, New England Telephone's parent, NYNEX, has made annual equity infusions into New England Telephone to maintain a stable capital structure. New England Telephone has demonstrated a commitment to continued cost-cutting efforts.
 New England Telephone and Telegraph, a subsidiary of NYNEX Corporation, provides local telecommunications services in the upper New England area. The company serves 5.7 million access lines in the five state area of Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.
 -0- 9/21/93
 /CONTACT: James J. Stork, CFA, of Duff & Phelps Credit Rating Co., 312-368-3125/
 (NYN)


CO: New England Telephone and Telegraph Company ST: IN: TLS SU: RTG

TW -- NY085 -- 4323 09/21/93 16:12 EDT
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Publication:PR Newswire
Date:Sep 21, 1993
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