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S&P Affirms Ratings of AlliedSignal Inc.

31 May 1998

S&P Affirms Ratings of AlliedSignal Inc.; Outlook Stable

    NEW YORK, May 29 -- Standard & Poor's today affirmed its
ratings (see list below) on AlliedSignal Inc.'s following the announcement of
a $2.2 billion common share repurchase program extending over two years.
Standard & Poor's expects only modest incremental borrowings by AlliedSignal
over the course of this program.  Furthermore, the company is expected to
curtail repurchases if there are material acquisitions.
    The Morris Township, NJ-based firm's ratings are supported by strong
competitive positions in the aerospace, engineered materials, and automotive
markets, as well as a good financial condition characterized by solid
profitability and cash flow generation.  Stability is enhanced by diversity of
products and customers, significant aftermarket sales, and rising
international revenues.  Although improved performance in recent years
resulted from ongoing actions aimed at higher productivity, an increased
emphasis has been placed on growth through selected acquisitions, new
products, and globalization.
    Business prospects are generally favorable, marked by healthy conditions
in commercial aerospace, fairly strong contributions expected to continue from
the engineered materials sector and better results from the smaller automotive
segment.  A declining portion of revenues derives from commodity or cyclical
operations.  Sizable, internally generated funds and excess cash on hand
should be sufficient to meet the bulk of the firm's large requirements for
capital outlays, working capital, company-funded R&D, tax payments, share
repurchases, and dividends.

    OUTLOOK: STABLE
    Credit measures are expected to remain consistent with current ratings.
Efficiency improvements, leading market positions, and a moderate financial
policy offset the highly competitive nature and cyclicality of some markets.
-- CreditWire

    OUTSTANDING RATINGS AFFIRMED
    RATINGS
    Corporate credit rating                      A
    Commercial paper                             A-1
    Senior unsecured debt ratings                A
    Senior unsecured debt shelf (preliminary)    A
    Bank loan rating                             A