Printer Friendly

BANKWATCH RATINGS: SYNOVUS FINANCIAL CORP. (COLUMBUS, GA.) SENIOR DEBT ASSIGNED AA-

 NEW YORK, Oct. /?PRNewswire/ -- Thomson BankWatch has assigned a rating of AA- to the senior debt of Synovus Financial Corp. (NYSE: SNV). Synovus is in the offering stage of issuing $75 million of ten year senior notes. Proceeds from the issue will be used to redeem $45 million in high coupon debt; the remaining proceeds will be used for general corporate purposes, including retirement of debt to mature in the future, and investments in, or extensions of credit to, its subsidiaries.
 Earnings power has been a consistent part of SNV's operations. The company's 1H93 return on assets of 1.32 percent is typical of the strength of earnings, driven by a net interest margin approaching 5 percent, low credit costs and solid fee income. Asset quality measures continue to be strong. Despite a 30 percent concentration in commercial real estate, problems to date have been modest. The level of problem assets reflects the nature of the markets and customers SNV serves- smaller towns with stable employment bases, usually without boom and bust economies.
 Total System Services, Inc. (NYSE: TSS) ("TSYS"), an 80.7 percent owned subsidiary of Columbus Bank and Trust Company (CB&T), the lead bank, is the second largest credit card processing company in the world. As of June 30, 1993 TSYS processed approximately 32 million accounts for its customers, which included AT&T, NationsBank, General Electric, and Circuit City. Revenues and net income at TSYS have both grown at an approximate compound rate of 27 percent over the past ten years. In 1992 TSYS contributed 23 percent of SNV's net income.
 Management has demonstrated its ability to successfully integrate numerous acquisitions while instilling the Synovus culture to its new affiliates. (Since 1977 SNV has completed 60 acquisitions). SNV operates 31 community banks in Georgia, north Florida and Alabama. The company has maintained its strong financial performance and solid balance sheet through these expansionary times. Debt at the parent is modest relative to an ample capital base. In addition, funding and liquidity remain sound. We believe SNV's strategy of diversifying into credit card processing and its acquisitions of highly profitable community banks (and their proven ability to upstream dividends) gives the company additional financial flexibility.
 This communication is not an offer to sell or a solicitation of an offer to buy the securities mentioned. The information contained herein is derived from publicly available sources and Thomson BankWatch, Inc. makes no representation as to the accuracy or completeness of such information.
 -0- 10/4/93
 /CONTACT: Donna Thiemer, 212-510-0328, or Dianne Gray, marketing, 212-510-0309, both of Thomson BankWatch/
 (SNV)


CO: Synovus Financial Corp.; Total System Services, Inc. ST: Georgia IN: FIN SU: RTG

MP -- NY089 -- 8489 10/04/93 15:49 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:Oct 4, 1993
Words:453
Previous Article:DELPHI FINANCIAL GROUP PROPOSED SENIOR NOTES RAISED TO 'BBB-' BY FITCH -- FITCH FINANCIAL WIRE --
Next Article:SIGNET STAR HOLDINGS, INC., FILES PUBLIC OFFERING OF 5,850,000 SHARES OF COMMON STOCK
Topics:

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