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RJR NABISCO 'BBB' SENIOR DEBT AFFIRMED FOLLOWING CHARGE -- FITCH FINANCIAL WIRE --

 NEW YORK, Dec. 7 /PRNewswire/ -- RJR Nabisco, Inc.'s $8.0 billion "BBB" senior debt, $2.2 billion "BBB-" subordinated debt, and $1.2 billion "F-2" commercial paper are affirmed by Fitch. The action follows today's announcement of a $445 million after-tax restructuring charge to streamline operations. The credit trend is declining.
 RJR reported that third-quarter operating profit was down 23% from a year ago; excluding domestic tobacco, this figure would have risen by 16%. With the onset of the domestic tobacco price war in April 1993, industry players have re-examined operations to cut costs to maintain profitability. RJR also announced today a restructuring plan that will reduce its headcount by approximately 6,000 people, or 9.5% of current workforce, and cut costs in other areas such as promotional and merchandising programs. Once implemented, this program is expected to improve net income by $250 million per year.
 The cash impact of the charge is expected to be minimal in 1993, with the bulk occurring in 1994. For the nine months ended Sept. 30, 1993, RJR reported cash flow, after taxes, interest, capital expenditures and dividends, of $1.0 billion; which was used to reduce debt. Fitch anticipates RJR will be able to fund the cash impact from internal operating sources and maintain its debt reduction program.
 -0- 12/7/93
 /CONTACT: Thomas W. Hoens, CPA, 212-908-0569, or Robert Grossman, 212-908-0535, both of Fitch/


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

MP -- NY050 -- 5432 12/07/93 12:35 EST
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Publication:PR Newswire
Date:Dec 7, 1993
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