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RJR NABISCO, INC. SENIOR NOTES RATED 'BBB' BY DUFF & PHELPS, REMAINS ON RATING WATCH -- UNFAVORABLE

 NEW YORK, Aug. 13 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a "BBB" (Triple-B) rating to RJR Nabisco, Inc.'s debt offerings of $500 million senior notes due 2005 and $500 million senior notes due 2013. Despite the recent success in raising $1.25 billion of preferred equity and the expectation that proceeds from these debt offerings will eventually be used to retire higher cost subordinated debt, RJR Nabisco, Inc.'s long-term debt ratings remain on D&P's Rating Watch -- Unfavorable. Duff & Phelps presently rates RJR Nabisco, Inc.'s senior unsecured debt "BBB" (Triple-B) and subordinated debt "BB+" (Double-B-Plus).
 Duff & Phelps' primary concern relates to the impact on RJR's financial position from weakening domestic tobacco earnings. RJR's second quarter performance, in which operating income for domestic tobacco declined 43 percent, from $487 million to $277 million, underscores the impact of the intense price discounting between Philip Morris and RJR.
 We will continue to closely monitor tobacco industry trends to determine whether lasting damage will occur to RJR's overall operating profitability and financial flexibility.
 -0- 8/13/93
 /CONTACT: Thomas P. Razukas, CFA of Duff & Phelps Credit Rating Co., 212-908-0200/
 (RN)


CO: RJR Nabisco, Inc. ST: New York IN: TOB SU: RTG

TS -- NY066 -- 2662 08/13/93 15:38 EDT
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Publication:PR Newswire
Date:Aug 13, 1993
Words:211
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