DCR Withdraws Sequa Corporation's Subordinated Debt Rating

Duff & Phelps Credit Rating Co. (DCR) has withdrawn its Sequa Corporation senior subordinated debt rating of 'BB' (Double-B). The senior debt rating remains at 'BB+' (Double-B-Plus). The rating action reflects today's retirement of the remaining $138 million of 9-3/8 percent senior subordinated notes due 2003. Sequa's total funded debt was $934 million at September 30, 1999.

Sequa is a diversified industrial company with reported 1998 sales of $1.8 billion. Principal operations include Chromalloy Gas Turbine (43 percent of sales), ARC Propulsion (15 percent) in tactical missile motors and automotive air bag components, specialty chemicals (14 percent), Precoat Metals (10 percent) in metal coating and MEGTEC in graphics equipment. Sequa's strengths include a diversified multi-industry earnings base, leading market positions in many of its businesses and the ability to sell assets as necessary.

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 Sequa, visit DCR's Web site at www.dcrco.com.