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TAMBRANDS $150 MIL. MEDIUM-TERM NOTES RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Nov. 17 /PRNewswire/ -- Tambrands Inc.'s $150 million medium-term note program is rated "A" by Fitch. The company's 3(a)3 $150 million "F-1" commercial paper program is affirmed. The commercial paper program is fully backed by a revolving credit facility. The credit trend stable.
 The rating is based on the company's leading market position in a recession-resistant industry, worldwide brand franchise with TAMPAX, high degree of financial flexibility, and strong operating cash flows.
 Tambrands leads the U.S. tampon market with a 55 percent share and is the dominant market leader in other worldwide markets with high tampon usage. While there has been some market share slippage over the past year caused by reduced brand support and aggressive promotions by competitors, the company's market share has rebounded as a result of an advertising campaign introduced late in the second quarter. Tambrands' continuing effort to expand globally by introducing its products under the TAMPAX trademark in low tampon usage countries will allow for strong revenue growth.
 Since its 1989 restructuring, Tambrands has refocused its business strategy on tampons and successfully divested nonrelated businesses. Manufacturing facilities were upgraded in the U.S. and are expected to be upgraded in Europe. This should provide greater production efficiencies and result in operating margins above 23 percent. Although the company has decided to increase financial leverage to approximately 47 percent of total capitalization from its historical level of 4 percent to 6 percent, pretax interest coverage is expected to remain extremely strong around the 28 times (x) range.
 Since June, the company has a new chairman and has reorganized some of its senior management, but is still looking to fill the chief executive officer position. Tambrands remains committed to being an independent company focused on becoming a leading supplier and low-cost producer of tampons while maintaining high product quality.
 While Tambrands' continuing stock buy-back program is a credit weakness, more-than-sufficient cash flow is available for repurchase activity given the company's comparatively moderate capital expenditures, working capital, and scheduled debt service requirements. Additional credit concerns center on the risks associated with relying on a single product as the only source for revenue and the potential threat from strong competition with greater financial resources.
 -0- 11/17/93
 /CONTACT: Anne Marie May of Fitch, 212-908-0589/
 (TMB)


CO: Tambrands Inc. ST: New York IN: HOU SU: RTG

LG -- NY086 -- 5594 11/17/93 15:03 EST
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Publication:PR Newswire
Date:Nov 17, 1993
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