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DCR Reaffirms Goodrich Ratings

16 January 1998

DCR Reaffirms Goodrich Ratings

    CHICAGO, Jan. 16 -- Duff & Phelps Credit Rating Co. (DCR) has
reaffirmed the 'A-' (Single-A-Minus) senior unsecured debt rating and 'BBB+'
(Triple-B-Plus) Quarterly Income Preferred Securities (QUIPS) rating of B.F.
Goodrich Company.  This action follows initial discussions with management
regarding the proposed $375 million cash acquisition of Freedom Chemical
Company (1997 sales approximately $300 million).
    As a result of the transaction, Goodrich's debt is expected to rise to
approximately $1.2 billion, with debt-to-capitalization rising to
approximately 45 percent.  EBITDA/interest will likely be more than 7 times,
with debt/EBITDA less than 2 times near-term.  Closing is expected in the
first quarter.
    Over the past few years, B.F. Goodrich has divested a number of lower-
growth and lower-margin non-strategic businesses and acquired and invested in
a number of businesses that add to core aerospace and specialty chemical
operations.  This program has increased overall margins and reduced
cyclicality in the chemicals segment.  The rating had anticipated that debt
levels could likely exceed the company's 35 percent to 40 percent debt-to-
capital range in the near term as the company continued to focus on the growth
of core businesses, in part through acquisitions.  Management has now
indicated that no further large acquisitions are planned near term, and that
the company will be focusing on assimilating the acquisitions and reducing
leverage.

SOURCE  Duff & Phelps Credit Rating Co.