DUFF & PHELPS: CONTINENTAL BANK CORPORATION $150 MILLION FLOATING RATE EURONOTES RATED 'BBB+'
CHICAGO, July 20 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `BBB+' (triple B plus) to Continental Bank Corporation's $150 million offering of floating rate Euronotes. The notes were priced at 99.75 percent and float at 50 basis points above the three-month London Interbank Offered Rate. The notes are callable after August 1995 at par and are due August 1998. The rating reflects Continental's improved earnings performance and relatively large capital base, as well as lingering asset quality problems which are concentrated in the California residential real estate developer loan portfolio. Continental's improving profitability is indicative of progress in its corporate banking strategy. This progress is reflected in Continental's ability to generate a consistent level of revenues over the last several quarters. The mix of operating revenues changes from quarter to quarter given the variability of some lines of business, including trading and equity investments, but Continental has demonstrated an ability to produce consistent returns over a relatively prolonged period. Capital ratios have been enhanced through the retention of earnings and minimum asset growth. Asset quality has shown some improvement although exposures to residential real estate developers in California have been problematic for Continental. At mid-year 1993, California residential real estate assets approximated $500 million with about 74 percent non-performing. Continental Bank Corporation reported total assets of $22.4 billion at June 30, 1993, and ranks as the second largest bank holding company in Chicago and among the 35 largest in the United States. -0- 7/20/93 /CONTACT: Charles J. Orabutt Jr. of Duff & Phelps Credit Rating Co., 312-368-3153/ (CBK)
CO: Continental Bank Corporation ST: Illinois IN: FIN SU: RTG
CK -- NY072 -- 6845 07/20/93 12:51 EDT
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|Date:||Jul 20, 1993|
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