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BRITANNIA BUILDING SOCIETY EUROSTERLING SENIOR DEBT RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Feb. 25 /PRNewswire/ -- Britannia Building Society's 100 million pound sterling 10-1/2 percent senior Eurobond issue is rated A' by Fitch. The bonds, which mature in 2000, were swapped into floating rate sterling to match variable rate mortgages. The credit trend is declining. This primarily reflects Britannia's weak operating environment and does not necessarily indicate a future rating change. Other long-term senior debt totalled 725 million pounds as of Feb. 19, 1993.
 The rating reflects the loan portfolio's limited loss potential, stable retail funding, and strong legal structure. Despite a high level of nonperforming loans, the society remains profitable and well capitalized. To limit maturity bunching, Britannia ensures that no long- dated funding exceeds 150 million pounds in any one year up to 2000. Despite higher public sector borrowing requirements, Britannia experienced large cash inflows during 1992's last quarter as a result of a successful campaign on its postal accounts. Senior bondholders benefit from a strong legal structure which places senior debt claims ahead of depositors and shareholders with savings accounts.
 With U.K. unemployment rising above 3 million to 10.6 percent, a further, though manageable, rise in arrears cases is likely in 1993. However, tighter collections policies are allowing the society to collect arrearages more efficiently. Although the drop in interest rates has made mortgages more affordable, overall real estate activity remains weak.
 -0- 2/25/93
 /CONTACT: Ricardo J. Kleinbaum, 212-908-0525 or Marc R. Pinto, 212-908-0618, both of Fitch/


CO: Britannia Building Society ST: IN: CST SU: RTG

WB -- NY023 -- 0298 02/25/93 10:18 EST
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Date:Feb 25, 1993
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