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UNISYS CORPORATION DUFF & PHELPS UPGRADES DEBT AND PREFERRED STOCK

 CHICAGO, July 12 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has raised its rating of Unisys Corporation's outstanding senior notes and debentures from "B+" (Single-B-Plus) to "BB" (Double-B). The rating of Unisys' convertible subordinated notes was raised from "B" (Single-B) to "BB-" (Double-B-Minus) and its preferred stock was raised from "B-" (Single-B-Minus) to "B+" (Single-B-Plus). The rating action affects $2.3 billion of debt securities and $1.6 billion of preferred stock outstanding at the end of the company's first quarter ended March 31.
 The credit rating upgrades reflect the substantial progress Unisys has made toward bolstering its market positions while at the same time strengthening its balance sheet and improving profitability. A successful turnaround to-date has helped Unisys to solidify a customer base which had been concerned over the company's long-term viability. Further, the introduction of two new mainframes, which have been well-received by the market, and an increasing strategic focus in the higher-margin services end of the business are expected to help offset overall declines in large-system sales.
 Unisys' credit protection measures have likewise strengthened significantly over the last year. Earnings covered fixed charges by 1.9 times at the end of the company's first quarter versus a loss in 1991. Fixed obligations accounted for 61 percent of total capital in the first quarter, a substantial improvement from 65 percent at yearend 1992 and 71 percent at yearend 1991. We expect continued improvements in 1993 as Unisys should be able to generate cash flow from operations in excess of capital spending and dividend requirements. The company has also reinstated the dividend on its cumulative convertible preferred stock and dividends in arrears of about $140 million will be eliminated over the next nine quarters at current payment rates.
 -0- 7/12/93
 /CONTACT: Matthew D. Robbins, CFA of Duff & Phelps Credit Rating Co., 312-368-3120/
 (UIS)


CO: Unisys Corporation ST: Michigan IN: CPR SU: RTG

MG -- NY048 -- 0433 07/12/93 12:41 EDT
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Publication:PR Newswire
Date:Jul 12, 1993
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