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TOYS 'R' US, INC. ANNOUNCES SHARE REPURCHASE PROGRAM; DUFF & PHELPS RESPONDS

 CHICAGO, Jan. 13 /PRNewswire/ -- Duff & Phelps Credit Rating Co. initially views as neutral the Toys " R" Us, Inc. announcement to authorize up to $1 billion in share repurchases over the next several years, despite the impact on financial leverage.
 We assume that TOY's new share repurchase program will be opportunistically executed over the next four to five years and further assume that these purchases will be financed out of excess cash flow. Key to the latter assumption is that the company is able to successfully expand while maintaining or expanding cash flow margins. However, if TOY accelerates share repurchases, which would necessitate borrowings, the negative impact on fixed charge coverage and financial leverage would be material. If that were the case, a rating reduction would most likely be in order.
 Duff & Phelps currently rates TOY's senior debt 'AA+' (Double-A- Plus) and its short-term debt Duff 1+ (One-Plus), and will continue to monitor the situation closely.
 -0- 1/13/94
 /CONTACT: Marvin G. Behm of Duff & Phelps, 312-630-4664/
 (TOY)


CO: Toys "R" Us ST: IN: REA SU:

SH -- NY062 -- 1096 01/13/94 12:36 EST
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Publication:PR Newswire
Date:Jan 13, 1994
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