D&P: CHEMICAL BANKING CORPORATION $150 MILLION SENIOR NOTES RATED 'A'
CHICAGO, April 29 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `A' (single A) to Chemical Banking Corporation's $150 million offering of floating-rate notes. The notes are priced to float quarterly at a spread of 25 basis points above the three-month London Interbank Offered Rate. The notes are due May 6, 1996. The recently upgraded rating reflects Chemical's significantly strengthened balance sheet measures, enhanced earnings power, and improved competitive position. While asset quality measures have lagged the improvement in other performance measures to date, developments in the fourth quarter of 1992 and the first quarter of 1993 are encouraging. Further, we expect additional progress in asset quality in 1993 and beyond. Capital measures have been strengthened through equity issuance, the January 1992 issuance of $1.5 billion in common equity was critical, and retention of earnings. Chemical has also effectively managed the merger with Manufacturers Hanover Corporation, raising the original cost savings estimates from $625 million to $750 million. In 1992, $280 million in savings were realized. Chemical's leading position in several attractive lines of business, as well as market recognition of the improvement in fundamentals, have produced significant opportunities to grow revenues. This revenue growth combined with overhead expense control resulted in a significantly improved level of profitability in 1992 and the first quarter of 1993. Chemical Banking Corporation ranked as the third largest U.S. bank holding company at March 31, 1993 with total assets of $147 billion. -0- 04/29/93 /CONTACT: Charles J. Orabutt, Jr., CPA of Duff & Phelps Credit Rating Co., 312-368-3153/ (CHL)
CO: Chemical Banking Corporation ST: New York IN: FIN SU: RTG
AH -- NY074 -- 2665 04/29/93 12:39 EDT
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|Date:||Apr 29, 1993|
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