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RJR NABISCO HOLDINGS CORP. $500 MILLION PREFERRED STOCK ISSUE RATED 'B+' BY DUFF & PHELPS

 NEW YORK, July 22 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a preliminary rating of "B+" (Single-B-Plus) to the planned offering of $500 million Series B cumulative preferred stock by RJR Nabisco Holdings Corp. The preferred stock has the following features: non-callable for five years, no stated maturity, no sinking fund or mandatory redemption, and not convertible into any other securities of the company.
 The D&P rating primarily reflects RJR's still high financial leverage and continued weakness in its domestic tobacco segment. Profits within the domestic tobacco industry are expected to come under severe pressure due to Philip Morris' plan to permanently cut prices on its Marlboro and other premium brands. D&P will continue to monitor RJR's progress, as the financial impact of the industry's discounting trend cannot be fully assessed at this time.
 Despite the expected repayment of more senior debt held at RJR Nabisco, Inc. with the preferred stock proceeds, RJR's long term debt ratings will remain on D&P's Rating Watch - Unfavorable. D&P presently rates RJR Nabisco, Inc.'s senior unsecured debt "BBB" (Triple-B) and subordinated debt "BB+" (Double-B-Plus). RJR Nabisco Holding Corp.'s outstanding preferred stock is rated "B+" (Single-B-Plus) and is not under review. RJR's debt ratings were placed on D&P's Rating Watch on April 2, 1993, following an announcement by Philip Morris that it would lower the price of its leading Marlboro brand.
 -0- 7/22/93
 /CONTACT: Thomas P. Razukas, CFA of Duff & Phelps Credit Rating Co., 212-908-0200/
 (RN)


CO: RJR Nabisco Holdings Corp. ST: Georgia IN: FOD TOB SU: RTG

TS -- NY069 -- 4626 07/22/93 13:58 EDT
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Publication:PR Newswire
Date:Jul 22, 1993
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