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AVCO $1.5 BILLION SENIOR DEBT SHELF REGISTRATION 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Oct. 12 /PRNewswire/ -- Avco Financial Services, Inc.'s $1.5 billion shelf registration for senior debt is rated 'A+' by Fitch. The credit trend is stable.
 The rating reflects Avco's very strong and consistent profitability as one of the nation's leading consumer finance companies. Concerns focus on Avco's ownership by Textron, Inc. (NYSE: TXT), which although not rated by Fitch is of weaker credit quality. Avco's return on assets consistently exceeds 2 percent, high for the industry, as a result of good margins, expense controls, and stable asset quality.
 Avco's operations are independent from those of Textron. While Textron is of lower credit quality, covenants limit the Avco's leverage to 8.5x, and a nonconsolidation opinion has been offered. More importantly, if Textron weakens financially, it would have strong incentives to preserve the Avco franchise and realize its high market value through a divestiture.
 -0- 10/12/93
 /CONTACT: Nancy E. Stroker, CFA of Fitch, 212-908-0533/
 (TXT)


CO: Avco Financial Services, Inc. ST: New York IN: FIN SU: RTG

TM -- NY089 -- 1257 10/12/93 16:01 EDT
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Publication:PR Newswire
Date:Oct 12, 1993
Words:180
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