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JOHN DEERE CAPITAL $450 MIL. SR. SHELF RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, June 28 /PRNewswire/ -- John Deere Capital Corp.'s $450 million shelf registration is rated "A" for senior debt, "A-" for subordinated debt and "BBB+" for preferred stock by Fitch. The credit trend is stable.
 The rating reflects the company's good business position and financial attributes as well as its ownership by the 'A' rated Deere & Co. The company has leveraged its strong business base to expand into agriculture-related credit products as well as dealer financing for boats and recreational vehicles. This expansion offers strategic growth and diversification opportunities but is offset by a slightly increased risk profile. As more than 75% of its receivables base remains Deere-related, John Deere Capital should still be identified as an agricultural credit company.
 All of the company's financial ratios remain strong. The company has had consistently high profitability with its returns on assets typically ranging from 1.6-2.1 percent as a result of good asset quality and expense controls. Despite the cyclical and structural issues facing farmers, they still have a very strong credit ethic, which has kept chargeoffs low in that dominant sector of the portfolio. Leverage is used conservatively as debt-to-equity ratios remain well below the ultimate target of 7.5 times. The company made good progress during 1992 in reducing its reliance on short-term debt to 47.68 percent of total debt, well below the 61 percent at the end of fiscal 1991.
 -0- 6/28/93
 /CONTACT: Valerie Gerard of Fitch, 212-908-0577/
 (DE)


CO: John Deere Capital Corp. ST: Illinois IN: AGR SU: RTG

14:23 -- NY062 -- 6330 06/28/93 14:41 EDT
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Publication:PR Newswire
Date:Jun 28, 1993
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