Arcadia Remains On RatingAlert Positive By Fitch IBCA.Business Editors NEW YORK--(BUSINESS WIRE)--March 31, 2000 The outlook for the `B' senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. of Arcadia Financial Ltd. (Arcadia) remains on RatingAlert Positive by Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals . Approximately $375 million of senior debt is outstanding. The rating was originally placed on RatingAlert Positive on Nov. 15, 1999 upon the announced merger of Arcadia and a subsidiary of Associates First Capital Corp. (`AFCC'). Under the merger agreement, AFCC AFCC Association of Family and Conciliation Courts AFCC Air Force Communications Command AFCC Arts Foundation of Cape Cod AFCC Automotive Fuel Cell Cooperation Corp. (Daimler AG, Ford Motor Company, and Ballard Power Systems) Newco Inc., a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of AFCC, will be merged into Arcadia. Arcadia will in turn become a wholly owned subsidiary of AFCC. Arcadia's shareholders are expected to vote on the merger agreement on March 31, 2000 and if approved, the merger is expected to close April 3, 2000. Based on the proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. filed March 3, 2000 by AFCC and Arcadia, AFCC will not assume or guarantee the senior unsecured debt of Arcadia at this time. As a result, while Fitch IBCA continues to maintain the RatingAlert Positive status on the senior unsecured debt, the ratings on these issues will not be equalized with those of `A+'-rated AFCC upon consummation of the merger. Previously, Fitch IBCA expected the ratings of Arcadia to be equalized with AFCC. Fitch IBCA will continue to monitor developments regarding the status of Arcadia's senior debt. Arcadia is a Minneapolis-based subprime automobile consumer finance company, that purchases, sells, and services retail installment contracts installment contract n. an agreement in which payments of money, delivery of goods or performance of services are to be made in a series of payments, deliveries or performances, usually on specific dates or upon certain happenings. for new and used automobiles originated in 45 states. The company had managed receivables of $5.1 billion at Dec. 31, 1999. |
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