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TELE-COMMUNICATIONS 'BBB-' SENIOR. DEBT RATING AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Oct. 12 /PRNewswire/ -- Tele-Communications, Inc.'s (TCI) `BBB-' senior debt, `BB+' subordinated debt, and `F-3' commercial paper are affirmed pursuant to the company's announcement it will purchase Liberty Media Corp. in a stock swap valued at about $3.5 billion. The credit trend is stable.
 Subsequent to the acquisition, TCI and Liberty will remain separate entities, each 100 percent wholly owned subsidiaries of a newly created holding company. Like TCI's current corporate structure, where the parent company debtholders are shielded from borrowings at the company's self-financing subsidiaries and affiliates, TCI's restricted group bondholders will be insulated from activities at Liberty.
 TCI originally spun off Liberty in 1991 to comply with expected federal regulations limiting the size and amount of vertical ownership allowed within the cable industry. With the acquisition, TCI would be in compliance with new cable regulation governing horizontal and vertical integration. The newly created holding company will have full ownership of Liberty's programming assets, which include Black Entertainment Television, The Family Channel, and several regional sports networks.
 TCI generates annual revenue in excess of $4 billion and earnings before interest taxes depreciation and amortization (EBITDA) of about $1.9 billion. Liberty has annual revenues of about $1 billion, and more than $80 million of EBITDA. Liberty is also a major shareholder of QVC Network Inc., which has offered to buy Paramount Communications Inc.
 -0- 10/12/93
 /CONTACT: Keith B. Foley, 212-908-0572, or Stuart M. Rossmiller, 212-908-0639, both of Fitch/


CO: Tele-Communications, Inc. ST: IN: TLS SU: RTG

MP -- NY036 -- 1006 10/12/93 10:28 EDT
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Publication:PR Newswire
Date:Oct 12, 1993
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