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DUFF & PHELPS: NATIONSBANK CORP. $400 MILLION SENIOR NOTES RATED 'A'

 CHICAGO, Oct. 27 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `A' (Single-A) to NationsBank Corporation's $400 million offering of 5-3/8 percent senior notes. The non-callable notes were priced to yield 5.55 percent to maturity and are due April 15, 2000.
 The ratings reflect NationsBank's overall sound financial condition. Balance sheet measures have strengthened as asset quality has improved, loan loss reserves have been enhanced, and capital measures have been significantly increased. Further, profitability has also improved dramatically as credit-related costs have declined, the net interest margin has expanded, and overhead costs have been contained. NationsBank reported third quarter 1993 earnings of $341 million, 0.99 percent return on assets, compared to $350 million, 1.22 percent, in 1992. However, securities gains, one-time special items, and differences in tax rates, masks the improvement in operating earnings. Pretax operating income before one-time items and securities gains rose 56 percent between periods, to $507 million from $324 million. The ratings also incorporate the acquisition of MNC Financial completed Oct. 1, 1993. While NationsBank has been an active acquirer, management has shown an ability to successfully integrate new operations.
 NationsBank Corporation ranked as the fourth largest U.S. bank holding company at Sept. 30, 1993, with total assets of $139 billion. NationsBank subsidiaries are engaged in a variety of lending activities and the company operates one of the largest retail banking networks in the United States.
 -0- 10/27/93
 /CONTACT: Charles J. Orabutt Jr., CPA, CFA of Duff & Phelps Credit Rating Co., 312-368-3153/
 (NB)


CO: NationsBank Corporation ST: North Carolina IN: FIN SU: RTG

CK -- NY084 -- 7353 10/27/93 13:29 EDT
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Publication:PR Newswire
Date:Oct 27, 1993
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