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DUFF & PHELPS: CHEMICAL BANKING CORPORATION $150 MILLION SUBORDINATED NOTES RATED 'A-'

 CHICAGO, Oct. 20 /PRNewswire/ -- Duff & Phelps Credit Rating Co. announced today that it has assigned a rating of "A" (single A) to Chemical Banking Corporation's $150 million offering of 6 1/8 percent subordinated notes. The noncallable notes were priced to yield 6.142 percent to maturity.
 The notes are due Nov. 1, 2008.
 The rating reflects the strengthening in the overall financial condition of the organization with significant improvements in balance sheet measures and earnings capability. These positives are reflected in the Corporation's third quarter performance. Net income rose 78 percent to $502 million which equaled a return on assets of 1.39 percent. Earnings were inflated by $73 million due to the recognition of tax benefits. Excluding this effect, net income would have risen 52 percent with an adjusted return on assets of 1.19 percent. Positively, asset quality improvement accelerated in the third quarter. Nonperforming assets declined 15 percent in the quarter to $4.13 billion from June 30, 1993, and dropped 37 percent from the year earlier period. The non-less developed country loan loss reserve equaled a large 107 percent of non-accrual loans at Sept. 30, 1993, compared with 85 percent at June 30, 1993.
 Stockholders equity rose to 7.3 percent from 7.2 percent and 6.9 percent, three months and one year earlier, respectively, while the Tier 1 capital ratio rose to 7.9 percent from 7.6 percent and 7.2 percent, respectively.
 Chemical Banking Corporation reported total assets of $149 billion at September 30, 1993, and ranked as the third largest U.S. bank holding company.
 -0- 10/20/93
 /CONTACT: Charles J. Orabutt, Jr., CPA, CFA of Duff & Phelps Credit Rating Co., 312-368-3153/
 (CHL)


CO: Chemical Banking Corporation ST: New York IN: FIN SU: RTG

TS -- NY102 -- 4784 10/20/93 16:56 EDT
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Publication:PR Newswire
Date:Oct 20, 1993
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