OTHER NEWS - Sept. 23, 1993

S&P; May Cut RJR Nabisco Rating: Standard & Poor’s Corp. cited fierce competition in the tobacco industry in announcing the possible downgrades for the debt ratings of RJR Nabisco Holdings Corp. and its RJR Nabisco Inc. At the same time, S&P; said it affirmed its ratings on other tobacco firms, including archrival Philip Morris Cos. Despite RJR’s efforts to strengthen its balance sheet since its 1988 leveraged buyout, S&P; said, aggressive U.S. tobacco cigarette pricing, the growth and competition in lower-margined value brands and the likelihood of an increase in federal excise taxes have combined to increase risk. The buyout has burdened RJR Nabisco with massive amounts of debt. S&P; said it has placed RJR Nabisco Holdings and its tobacco unit’s BBB-minus senior debt, BB-plus subordinated debt and BB-plus preferred stock on credit watch with negative implications.