DUFF & PHELPS: CHEMICAL BANK $150 MILLION FLOATING RATE SUBORDINATED NOTES RATED 'A'
CHICAGO, July 22 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `A' (single A) to Chemical Bank's $150 million offering of floating rate subordinated notes. The non-callable notes float quarterly 6.25 basis points above the three-month London Interbank Offered Rate with a floor of 4.2 percent. The notes are due July 29, 2003. Chemical Bank is the principal banking subsidiary of Chemical Banking Corporation. The rating reflects the strengthening in the overall financial condition of the organization since the merger with Manufacturers Hanover Corporation. Profitability has significantly improved, the balance sheet has been substantially strengthened, and Chemical's competitive position has been dramatically enhanced. These positives are reflected in Chemical Banking Corporation's second quarter performance. Net income rose 59 percent to $381 million which equaled a return on assets of 1.04 percent, compared to $240 million, .70 percent, in 1992. Balance sheet measures also improved with stockholders' equity increasing to 7.2 percent from 6.7 percent one year earlier, while the Tier 1 capital ratio rose to 7.6 percent from 7.0 percent and the total capital ratio improved to 11.9 percent from 11.1 percent. Asset quality measures improved as non-performing assets declined $843 million, 15 percent, in the second quarter. Non-less developed country non- performers dropped $521 million, 12 percent, during the quarter. Loan loss reserves are also solid, with the non-LDC loan loss reserve equaling 85 percent of non-performing loans at June 30, 1993. Chemical Banking Corporation reported total assets of $146 billion at June 30, 1993, and ranks as the third largest U.S. bank holding company. -0- 7/22/93 /CONTACT: Charles J. Orabutt Jr. of Duff & Phelps Credit Rating Co., 312-368-3153/ (CHL)
CO: Chemical Banking Corporation ST: New York IN: FIN SU: RTG
CK -- NY072 -- 4643 07/22/93 14:18 EDT
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|Date:||Jul 22, 1993|
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