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XTRA INC. DEBT RATING ADDED TO RATING WATCH-FAVORABLE BY DUFF & PHELPS

 CHICAGO, March 18 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has added the rating for the medium-term notes of XTRA Inc. to Rating Watch for potential upgrade. The notes are currently rated 'BBB' (Triple-B). Approximately $80 million of medium-term notes are affected.
 The Rating Watch addition reflects XTRA's proposed public offering of 650,000 shares of common stock. Based on the current market price of XTRA's stock and depending on exercise of an over-allotment provision for up to an additional 97,500 shares, the offering could generate proceeds of $60-70 million. Successful completion of the stock offering would substantially reduce balance sheet leverage ratios and restore XTRA's financial flexibility. The balance sheet was negatively impacted by the acquisition of Strick Lease on Oct. 2, 1992 for $114 million cash and the assumption of approximately $236 million in debt. This transaction raised the debt to common equity ratio from 1.3:1 at Sept. 30, 1992, to 2.8:1 at Dec. 31, 1992. Use of the common stock sale proceeds to reduce debt will lower the debt to equity ratio to under 2.0:1. Importantly, the Strick acquisition has been assimilated smoothly and has resulted in improved operating efficiencies and profitability. Cash flow from operations is substantial and should result in further reductions in balance sheet leverage going forward.
 XTRA leases transportation equipment, primarily over-the-road trailers, and intermodal equipment, including intermodal trailers, domestic containers and chassis. At Dec. 31, 1992, XTRA had $1.1 billion of revenue equipment on lease.
 -0- 3/18/93
 /CONTACT: Daryl R. Leehaug, CPA, CFA of Duff & Phelps Credit Rating Co., 312-368-3124/


CO: XTRA Inc. ST: IN: TRN SU: RTG

PS -- NY045 -- 7510 03/18/93 12:26 EST
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Publication:PR Newswire
Date:Mar 18, 1993
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