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AMERICAN GENERAL FINANCE INVESTMENT NOTES RAISED TO 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 AMERICAN GENERAL FINANCE INVESTMENT NOTES RAISED TO 'A+' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, April 23 /PRNewswire/ -- American General Finance, Inc.'s (AGFI) outstanding investment notes, series D, E, and F are raised to 'A+' from 'A' by Fitch. The upgrade reflects the company's solid performance and the strong capacity for support from parent American General Corp.
 Since the 1988 acquisition of Manufacturers Hanover Consumer Services, which doubled the size of the company's asset base, AGFI has made steady progress in assimilating and focusing the business. AGFI is a consumer finance company that specializes in secured lending to individuals, related credit insurance and, to a lesser degree, credit card services. Its principal subsidiary, American General Finance Corp., comprises 94 percent of AGFI's assets and operates a network of over 1,100 branches that engage in real estate secured, installment and indirect retail lending. AGFI also owns various thrift and loan institutions that specialize in consumer finance and credit card lending. AGFI has demonstrated strong earnings growth, despite substantial goodwill charges and good asset quality.
 AGFI maintains a well-capitalized balance sheet with debt to equity equal to 5.20 times at Dec. 31. While double leverage was 116 percent, American General Finance Corp.'s strong earnings and dividend capacity alleviates parent company concern issues. During 1991, American General Corp. strengthened AGFI's balance sheet by contributing its $495.5 million preferred stock investment to AGFI's additional paid-in-capital.
 American General Corp.'s commitment to AGFI is evidenced by integration of management and systems, consolidated funding and investment practices, and a parent company guaranty of all subsidiary advances under the joint bank agreement. The parent is committed to maintaining appropriate capital levels and financial policies. This has mitigated Fitch's previous concerns relative to event risk and shareholder emphasis. Despite a still fairly aggressive dividend payout and share repurchase plan, there is still strong dividend capacity from all of American General Corp.'s primary operating subsidiaries.
 -0- 4/23/92
 /CONTACT: Nancy E. Stroker, 212-908-0533, or Helene L. Moehlman, 212-908-0500, both of Fitch/
 (AGC) CO: American General Finance, Inc. ST: Texas IN: FIN SU: RTG


KD -- NY129 -- 2140 04/23/92 16:46 EDT
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Publication:PR Newswire
Date:Apr 23, 1992
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