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GOLDMAN SACHS GROUP MEDIUM TERM NOTES

       GOLDMAN SACHS GROUP MEDIUM TERM NOTES  AA', COMMERCIAL PAPERS
                F-1+' BY FITCH  -- FITCH FINANCIAL WIRE --
    NEW YORK, Nov. 11 /PRNewswire/ -- Goldman Sachs Group, L.P.'s medium term notes are rated  AA' and its commercial paper is rated  F-1+' by Fitch.  Goldman has approximately $900 million of medium term notes and $7 billion of commercial paper outstanding.  The rating reflects Goldman Sachs' excellent and consistent long term earnings performance and its well managed balance sheet marked by high liquidity, sound asset quality, and a flexible funding structure.  The partnership format is also a positive feature in assuring management practices, which are well balanced and maintain the company's strong reputation.
    The medium term note program and commercial paper are issued at the holding company, Goldman Sachs Group.  Commercial paper issuance has recently been transferred from the broker/dealer subsidiary in a continued effort to consolidate most external funding at the parent company.  The commercial paper proceeds, like all other short-term intercompany borrowings, are lent principally on a secured basis to subsidiaries, and are used primarily to finance securities inventory.
    In addition to Goldman's highly liquid balance sheet, the company has significant access to global debt markets for short and long term financing.  Additionally, Goldman has accessed outside equity capital with a significant $500 million investment by Sumitomo Bank and $275 million preferred-like instruments through the private market.  The partnership structure has therefore not limited the company's ability to grow and take advantage of market opportunities.  All unsecured short- term debt is 100 percent covered by unencumbered collateral.  The debt maturity structure has been lengthened to further reduce Goldman's reliance on short-term markets, mainly commercial paper.  The holding company has no double leverage and risk adjusted leverage is moderate at the broker/dealer.
    Goldman's earnings performance has been less volatile than its peers due to its diverse revenue streams aided by dominant market positions within each of its five core businesses.  Exceptional earnings in 1990 and the first nine months of fiscal 1991 were marked by high levels of trading profits in all three trading businesses: debt, equity and commodities.  Even in less generous markets, however, the company has proven its ability to consistently operate profitably.  The credit trend is stable.
    -0-            11/11/91
    /CONTACT:  Stephen W. Joynt, 212-908-0530, Nancy E. Stroker, 212-908-0533, or Teri L. Seelig, 212-908-0500, all of Fitch/ CO:  Goldman Sachs Group L.P. ST:  New York IN:  FIN SU:  RTG SM -- NY057 -- 3109 11/11/91 14:58 EST
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Publication:PR Newswire
Date:Nov 11, 1991
Words:412
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