---

DCR Rates GenCorp Inc.'s Secured Revolving Line of Credit

13 January 2000

DCR Rates GenCorp Inc.'s Secured Revolving Line of Credit

    CHICAGO, Jan. 13 -- Duff & Phelps Credit Rating Co. (DCR) has
assigned a 'BB' (Double-B) rating to GenCorp`s previously unrated secured
revolving line of credit.  DCR's previous rating of 'BBB-' (Triple-B-Minus) on
the senior unsecured debt is being withdrawn because the amount of unsecured
debt is not significant.  GenCorp's Rating Watch-Uncertain status has been
removed following today's action. The rating action completes DCR's review of
GenCorp after the spin-off of GenCorp's performance chemicals and decorative &
building products businesses in October 1999.  The Rating Outlook is Stable.
    While present GenCorp financial ratios are strong for the rating, DCR's
rating recognizes the potential for significant changes in the composition of
GenCorp's business portfolio and capital structure.  The company is actively
seeking acquisitions in the aerospace industry.  These acquisitions are likely
to be for cash. Further, DCR notes that GenCorp is seeking a joint venture
partner for its propulsion activities which would change the character of one
of its primary businesses.  The credit implications of such a move are unknown
at this time.  DCR's rating also reflects remaining uncertainty as to
GenCorp's environmental liabilities.  While GenCorp has a cost sharing
arrangement with the government on environmental cleanup at Aerojet's two
principal California facilities, potential liabilities at other sites are less
well-defined.  On he positive side, GenCorp has made good progress in
improving margins at Aerojet.
Aerojet's participation in various mature launch vehicle and other programs
should sustain revenues over the intermediate term.  Also, a potential source
of liquidity is excess land in Sacramento, Calif. valued at approximately
$100 million.
    GenCorp's fiscal 1999 (November) sales of $1.1 billion consisted of
57 percent aerospace and fine chemicals and 43 percent automotive.  The
aerospace division, Aerojet, is a major supplier of liquid and solid
propellant rocket engines, satellite payloads and electronics, and tactical
weapon subsystems and components.  The bulk of sales are to the government
market.  Automotive operations are centered on the production of rubber
sealing systems and components.  GenCorp is second in the North American
market.  General Motors and Ford account for the bulk of sales.
    Future rating action will consider the credit implications of GenCorp's
efforts to reshape its business portfolio and any new developments in
environmental liabilities.  GenCorp had total funded debt at November 30,
1999, of $158 million, which largely represented borrowings under GenCorp's
$250 million secured revolving credit agreement.
    DCR is a leading global rating agency with 34 local market offices
providing ratings and research on debt issues and insurance claims paying
ability in more than 50 countries.  For additional research on GenCorp, visit
DCR's Web site at http://www.dcrco.com (Quick Search:  GenCorp).  DCR's
research is also available on Bloomberg at DCR and First Call`s BondCall
Direct/Research Direct at http://www.firstcall.com, as well as through other
third-party providers.