Mattel Credit Analysis Available

[P3D Lawrence Kaufman <kaufman@xxxxxxxxxxxx>]

For those who were interested in the recent Mattel news
and concerned about View-Masters future, I ran across
this...with more information available by phone or email:
 
CHICAGO, May 27 /PRNewswire/ -- Mattel Inc.'s current 
leading position in the toy industry and conservative debt 
protection measures are owed to management's unwavering 
focus on growing core product lines since the late 1980s, 
according to a Credit Analysis report on the firm recently
published by Duff & Phelps Credit Rating Co. (DCR). "The 
time-tested popularity of Mattel's core brands, including 
Barbie, Disney, Hot Wheels and Fisher Price, mitigates 
earnings volatility and lowers the high level of business 
risk typically associated with the toy industry," said
Doris Nakamura, a DCR vice president and author of the 
report. In March, Mattel merged with Tyco Toys, Inc. in a 
pooling of interests transaction valued at $721 million. 
Tyco's principal product lines, including Matchbox, Sesame 
Street toys and View-Master, should benefit from
Mattel's extensive and well-established international 
marketing and distribution networks and expertise in line 
extensions. "A key objective for Mattel in 1997 is a renewed 
focus on core businesses," Nakamura said. Some noncore 
products will be reevaluated, and SKUs will be trimmed 
within each of the core businesses in order to focus on the 
most promising and successful products. Although Mattel 
has used moderate levels of debt to fund acquisitions, 
such debt has been paid down relatively quickly from 
free cash flow. Moreover, excess cash flow has enabled 
Mattel to reduce financial leverage and strengthen liquidity and
credit protection measures. DCR rates Mattel's senior debt 'A'
(Single-A) and its commercial paper 'D-1' (D-One).  

For a copy of DCR's Credit Analysis report on Mattel Inc., 
or for information about other DCR research reports, call 
the DCR Hot Line at (312) 368-3198 or e-mail
hotline@xxxxxxxxxx

Now back to 3D,
Lawrence


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