Printer Friendly

AVCO $200 MILLION 5.5 PERCENT SENIOR NOTES RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Sept. 2 /PRNewswire/ -- Avco Financial Services, Inc.'s $200 million 5.5 percent notes due April 1, 2000 are 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., 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 than Avco, covenants limit the Avco's leverage to 8.5x, and a nonconsolidation opinion has been offered. More importantly, if Textron weakened financially, it would have strong incentives to preserve the Avco franchise and realize its high market value through a divestiture.
 -0- 9/2/93
 /CONTACT: Nancy E. Stroker, CFA, of Fitch, 212-908-0533/


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

MP -- NY071 -- 8515 09/02/93 15:17 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 2, 1993
Words:179
Previous Article:WHEELABRATOR TECHNOLOGIES INC. ACQUIRES HPD INCORPORATED, EXPANDING WATER TREATMENT CAPABILITIES
Next Article:DUFF & PHELPS: STANDARD CREDIT CARD MASTER TRUST I, SERIES 1993-2 CITIBANK (SOUTH DAKOTA) N.A.; CITIBANK (NEVADA) NATIONAL ASSOCIATION
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters