Printer Friendly

BENEFICIAL CORP. $3 BILLION SHELF RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Jan. 7 /PRNewswire/ -- Beneficial Corp.'s $3 billion debt shelf registration is rated "A+" by Fitch. The credit trend is stable.
 The rating reflects Beneficial's highly focused consumer finance operations. With over $10 billion in total receivables, Beneficial continues to grow and build market share in targeted product lines. Almost two-thirds of the receivable base is represented by real estate secured loans, which have strong credit characteristics. Nevertheless, economic conditions have impacted asset quality, although without the pronounced swings experienced by some of its peers.
 Beneficial's profitability is improving. The company's 40 basis point return on assets for 1992 was uncharacteristically low and reflected a $98.6 million non-cash charge due to the adoption of FAS 106 and 109, as well as weaknesses in the U.K. and Canada. For the nine months ended Sept. 30, 1993, return on assets improved to 1.4% with stronger performances in the U.K. and Canada, somewhat offset by problems in southern California (roughly 10% of the portfolio) and Germany (4%). The balance sheet remains strong due to management's conservative funding and capitalization policies.
 -0- 1/7/94
 /CONTACT: Helene L. Moehlman, 212-908-0606, or Nancy E. Stroker, 212-908-0533, both of Fitch/
 (BNL)


CO: Beneficial Corp. ST: Delaware IN: FIN SU: RTG

PS -- NY053 -- 0255 01/07/94 16:17 EST
COPYRIGHT 1994 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1994 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 7, 1994
Words:219
Previous Article:LOWER THAN EXPECTED UNEMPLOYMENT PROMPTS HEAVY TREASURY VOLUME
Next Article:SAFECARD SETS 1994 ANNUAL MEETING DATE

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters