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TELE-COMMUNICATIONS $850 MILLION SENIOR DEBT RATED 'BBB-' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Aug. 4 /PRNewswire/ -- Tele-Communications, Inc. (TCI)'s $300 million 7 1/4 percent senior notes due 2005 and $550 million 7 7/8 percent senior debentures due 2013 are rated "BBB-" by Fitch. TCI's outstanding $3 billion of "BBB-" senior debt, $393 million "BB+" subordinated debt, and $27.9 million "F-3" commercial paper ratings are affirmed. The credit trend is stable.
 The new offerings are takedowns from TCI's $3 billion shelf registration rated "BBB-" for senior and "BB+" for subordinated debt. Proceeds will be used to reduce a subsidiary term loan that matures in 1999.
 On April 1, 1993, the Federal Communications Commission announced regulations that will force most cable systems to reduce cable fees they charge consumers and limit future rate increases. On an annualized basis, TCI estimates this new rate regulation will result in a $140 million-$160 million revenue reduction. While re-regulation will make it difficult for many cable operators to deleverage and invest in new technology, TCI will be less affected because it has a large, highly diversified portfolio of cable systems that can absorb the financial impact of re-regulation more easily while developing new integrated full service networks.
 Debtholder protection measures have improved significantly over the past two years. Debt relative to earnings before interest, taxes, depreciation, and amortization (EBITDA) was 5.9 times (x) for most recent 12-month period ending March 31, 1993, down from 6.6x at year-end 1991. Cash flow coverage of interest has also improved significantly to about 2.5x, up from 1.7x at year-end 1991. In addition, TCI has regularly demonstrated access to diversified sources of capital, and extended debt maturities to reflect more appropriately the company's asset base. As a result of TCI's improved credit profile, the company is among the best positioned to increase future cash flows from the delivery of new services.
 TCI is the largest cable television company in the U.S., providing service to approximately 10.4 million subscribers nationwide. The company also has ownership interests in other cable television companies that control an additional 4.9 million subscribers worldwide.
 -0- 8/4/93
 /CONTACT: Keith B. Foley, 212-908-0572 or Stuart Rossmiller, 212-908-0639, both of Fitch/


CO: Tele-Communications, Inc. ST: New York IN: FIN SU:

LG-MG -- NY065 -- 9428 08/04/93 13:51 EDT
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Publication:PR Newswire
Date:Aug 4, 1993
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