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RJR 'BBB' SR. DEBT AFFIRMED FOLLOWING WITHDRAWAL OF STOCK OFFERING -- FITCH FINANCIAL WIRE --

 NEW YORK, June 23 /PRNewswire/ -- RJR Nabisco, Inc.'s (NYSE: RN) $8.0 billion `BBB' senior debt, $2.2 billion `BBB-' subordinated debt, and $700 million `F-2' commercial paper are affirmed by Fitch. The action follows today's withdrawal of a planned initial public offering of new stock representing shares in Nabisco Foods Group's performance. The credit trend is stable.
 Fitch affirmed RJR Nabisco ratings when the offering was first announced, citing it would not affect the legal standing of RJR's bondholders, since they are creditors of the combined entity. Fitch assesses RJR's creditworthiness based on its consolidated financial results and outlook. Furthermore, the benefit of the proposed initial equity infusion of $1.5 billion was mitigated by the anticipated commencement of a common dividend totaling some $200 million per year.
 RJR generates approximately $4.1 billion in annual cash flow. It requires $2.9 billion for annual cash needs of interest, dividends, taxes, capital expenditures, and working capital. This leaves a considerable cash cushion of almost $1.2 billion per year for debt reduction, acquisitions, or other corporate purposes. This cushion is sufficient to see RJR through the current price war in the tobacco industry without damage to its exiting credit ratings.
 Assuming the remaining LBO debt is refinanced, as has been RJR's practice to date, future debt maturities are relatively modest at an average of $200 million annually over the next five years. Fitch expects RJR will use a portion of its remaining free cash flow to further reduce high-cost debt. RJR Nabisco is a leading branded consumer products company.
 -0- 6/23/93
 /CONTACT: Thomas W. Hoens, 212-908-0569, or Leah W. Murch, 212-908-0511, both of Fitch/
 (RN)


CO: RJR Nabisco, Inc. ST: Georgia IN: FOD SU: RTG

TM -- NY075 -- 5193 06/23/93 17:21 EDT
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Publication:PR Newswire
Date:Jun 23, 1993
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