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NEW YORK TELEPHONE COMPANY $200 MILLION 6-1/2 PERCENT DEBENTURES DUE 2005 RATED 'A' BY DUFF & PHELPS

 CHICAGO, Feb. 25 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of A' (Single-A) to New York Telephone's issuance of $200 million of 6 1/2 percent debentures due March 1, 2005. The debentures were priced at 99.43 to yield 6.57 percent to maturity. Proceeds will be used to refinance high cost debt. The company has $200 million remaining for sale on prior shelf registrations.
 New York Telephone operates in a highly competitive service territory, has high cost operations despite recent expense reductions, and has an historically difficult regulatory environment. Aggressive operating expense cuts coupled with reductions in interest expense caused by lower interest rates led to a modest improvement in pretax interest coverages in 1992. Cost control efforts remain critical in order for New York Telephone to maintain or improve operating earnings in the face of strong competition and the weak economy in New York. Internal funds generation over 1993-95 (assuming an 85 percent dividend payout to NYNEX) should fund estimated construction expenditures in excess of $4.0 billion. Duff & Phelps Credit Rating Co. rates the refunding mortgage bonds and debentures of New York Telephone at the same level (Single-A) since New York Telephone covenants that no new refunding mortgage bonds will be issued while any debentures remain outstanding.
 New York Telephone provides local exchange telecommunications services to 9.8 million access lines in New York and a small portion of Connecticut. Three-quarters of its access lines are in the highly competitive New York metropolitan area. New York Telephone is a wholly owned subsidiary of NYNEX Corporation.
 -0- 2/25/93
 /CONTACT: James J. Stork of Duff & Phelps, 312-368-3125/


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

SM -- NY079 -- 0509 02/25/93 15:38 EST
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Publication:PR Newswire
Date:Feb 25, 1993
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