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RJR NABISCO $1.2 BILLION NEW SENIOR DEBT RATED 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --

 RJR NABISCO $1.2 BILLION NEW SENIOR DEBT RATED 'BBB' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, March 20 /PRNewswire/ -- RJR Nabisco Capital Corp.'s proposed offering of $600 million senior notes due 1999 and $600 million senior notes due 2004 is rated 'BBB' by Fitch. RJR Nabisco, Inc.'s 3(A)3 commercial paper program is rated 'F-3'. The company's outstanding $5.1 billion 'BBB' senior debt, $3.7 billion 'BBB-' subordinated debt, and $100 million 'BBB-' preferred stock are affirmed.
 Proceeds from these debt financings will be used to reduce bank debt recently incurred to repurchase $1.0 billion of outstanding high coupon debt. This transaction provides RJR with the opportunity to improve its capital structure by reducing LBO- related debt and lengthening maturities.
 The ratings reflect Fitch's expectations of continuing improvement in RJR's operating and financial performance over the next several years. Key rating considerations include the company's favorable industry positions and strong and stable free cash flow generating ability, and management's commitment to further reduce debt leverage.
 The pending U.S. Supreme Court case Cippilone v Liggett Group, et al. (See Fitch special report dated April 3, 1991) is of continuing concern. All of Fitch's tobacco-related ratings remain on FitchAlert with evolving implications pending resolution of this matter. The case was reargued in January and should be decided in the second quarter of 1992. An adverse decision could increase the number of lawsuits and could potentially result in lower ratings for RJR and the other tobacco companies due to increased litigation exposure and higher advertising and packaging costs.
 RJR is the second largest tobacco company in the United States, and, through its Nabisco Foods Group, ranks as one of the world's largest packaged foods companies.
 For a copy of Fitch's complete report on RJR Nabisco, call Janet Zimmerman 212-908-0582. For more rating or legal information, call Thomas W. Hoens, CPA 212-908-0569 or Leah W. Murch, Esq., 212-908-0511.
 -0- 3/20/92
 /CONTACT: Janet Zimmerman of Fitch, 212-908-0582/ CO: RJR Nabisco Capital Corp. ST: IN: FIN SU: RTG


TQ -- NY006 -- 9989 03/20/92 09:26 EST
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Publication:PR Newswire
Date:Mar 20, 1992
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