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NEW YORK TELEPHONE $300 MILLION IN NOTES RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Aug. 17 /PRNewswire/ -- New York Telephone Co.'s (NY Tel) $200 million 5.875 percent notes due 2003, and $100 million 5.25 percent notes due 1998 are rated "A+" by Fitch. The ratings reflect the company's ability to sustain credit quality despite a lagging New York economy and growing competition. The credit trend is improving.
 New York Telephone has restored its financial performance to levels appropriate for the rating by cutting costs, primarily through significant staff reductions in the last two years. In addition, NY Tel has responded to the competitive threat by improving the quality and range of its services, for both residential and corporate users. The company's efforts to improve the range of service offered to corporate users is exemplified by the introduction this year of NYNEX Enterprise Service. Enterprise service will allow NY Tel to meet business customers' demand for flexible bandwidth.
 Credit quality measures reflect NY Tel's success in responding to the challenging operating environment. Pretax interest coverage was 4.2x for 1993's first quarter, and profitability, as measured by return on average equity, was 13.8 percent. The company is generating sufficient cash from internal sources to fund essentially all of its capital needs. NY Tel's first-quarter 1993 debt ratio was 42.7 percent.
 NY Tel faces intensifying competition from several sources, including alternative access providers, such as Teleport Communications Group. More recently, US WEST has entered into an alliance with Time Warner Entertainment to build a full service network that will compete with NY Tel in the future.
 New York Tel., headquartered in New York, is a subsidiary of NYNEX Corp. (NYSE: NYN).
 -0- 8/17/93
 /CONTACT: Timothy Cain of Fitch, 212-908-0587/
 (NYN)


CO: New York Telephone Co. ST: New York IN: TLS SU: RTG

TS -- NY080 -- 3707 08/17/93 16:25 EDT
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Publication:PR Newswire
Date:Aug 17, 1993
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