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DCR Reaffirms Rockwell Debt Ratings

14 January 1998

DCR Reaffirms Rockwell Debt Ratings

    CHICAGO, Jan. 14 -- Duff & Phelps Credit Rating Co. (DCR) has
reaffirmed the senior unsecured debt rating of Rockwell International
Corporation at 'AA' (Double-A). Rockwell's commercial paper is rated 'D-1+'
(D-One-Plus).  The Rockwell ratings reflect the company's strong cash flow,
consistent financial performance and traditionally conservative
capitalization.
    Funded debt-to-invested capital was 4 percent as of September 30, 1997,
following management's actions in the past year to divest its
aerospace/defense and graphics systems businesses and spin off its automotive
business.
    The rating recognizes that Rockwell's low-debt status is temporary.  In
the past, Rockwell has used its strong balance sheet and excess free cash flow
to pursue strategic acquisitions and to repurchase shares.  Rockwell
management has targeted debt-to-invested capital at 30-35 percent.  DCR notes
that Rockwell recently filed a shelf for $1 billion in debt securities.
    With fiscal 1997 sales of $7.8 billion, Rockwell is a diversified
technology company with leading positions in its three businesses --
automation, avionics/communications and semiconductor systems.
    Rockwell had $222 million of debt outstanding as of September 30, 1997.

SOURCE  Duff & Phelps Credit Rating Co.