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Non-Tech : BBY -Best Buy -- Ignore unavailable to you. Want to Upgrade?

To: Greg Thornton who wrote (781)	5/5/1999 9:02:00 AM
From: Rainy_Day_Woman	Read Replies (1) \| Respond to of 980

DCR Upgrades Rating on Best Buy; Removes from Rating Watch - Up CHICAGO, May 4 /PRNewswire/ -- Duff & Phelps Credit Rating Co. (DCR) has raised its rating on Best Buy Co. Inc.'s (NYSE: BBY - news) $220 million bank credit facility to 'BBB' (Triple-B) from 'BB+' (Double-B-Plus) and removed the company from Rating Watch -- Up where it was placed on April 6, 1999. The rating upgrade reflects significant improvement in operating performance and financial posture over the past two years. BBY's balance sheet improved in fiscal year 1999 via the conversion of its $230 million MIPS into common equity and the retirement of $150 million senior subordinated notes from cash on hand. At the end of fiscal year 1999, there were no borrowings on the bank credit facility and the company's cash balance was $780 million. BBY's leverage now consists mostly of off-balance-sheet leases related to its store base. Total adjusted debt (including the present value of operating leases)/EBITDAR (EBITDA plus rents) was 1.8 times, an improvement over fiscal year 1998's figure of 3.1 times. Also, in fiscal 1999, the company reported strong sales and cash flow -- a direct result of improvements in systems, enhanced inventory management and a pipeline of new digital products buoyed by a strong economy. Positive consumer sentiment and a strong economy continue to drive the consumer electronics industry. The revised rating reflects the highly competitive consumer electronics industry, risks associated with a slowdown in consumer spending and opportunities to expand into new businesses (ecommerce). BBY is positioned to take advantage of the current pipeline of new digital products. DCR notes that the company's focus is new store growth and developing ancillary businesses given its current and expected cash flow generating ability. BBY is a consumer electronics retailer with 311 stores in 36 states. Duff & Phelps Credit Rating Co. (DCR) is a leading global rating agency with 32 local market offices providing ratings and research on debt issues and insurance claims paying ability in more than 50 countries. For additional research on Best Buy visit DCR's web site at dcrco.com (Quick Search: Best Buy). DCR's research is also available on Bloomberg at DCR<GO> and First Call's BondCall Direct/Research Direct at firstcall.com, as well as through other third-party providers. SOURCE: Duff & Phelps Credit Rating Co.