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CHASE MANHATTAN 'BBB+' SENIOR DEBT ON FITCHALERT POSITIVE -- FITCH FINANCIAL WIRE --

 NEW YORK, April 19 /PRNewswire/ -- Chase Manhattan Corp.'s 'BBB+' senior debt is placed on FitchAlert with positive implications. Also on FitchAlert positive are Chase's 'BBB' subordinated debt and 'BBB-' preferred stock.
 The Fitceal estate portfolio
 The plan to sell additional common stock is of particular relevance. Fitch is likely to assign an 'A-' rating to Chase's senior debt upon successful conclusion of the offering, which is predicted to add $750 million in equity. Chase's subordinated debt is likely to be rated 'BBB+' and its preferred stock 'BBB'.
 The decision to segregate approximately $2 billion in book value of commercial real estate is a significant change in Chase's work-out philosophy for its troubled real estate portfolio. This move is a right step for the corporation and melds well with the its strategic focus.
 The mark-down of these selected properties to a new carrying value of about $1 billion represents a sizable reduction from originally assigned contract values and recent book value amounts. Such reductions should mitigate the need for any further material write-downs on these assets. Less than 20 percent of the remaining domestic commercial real estate loans are expected to be nonaccruing.
 The use of $500 million of deferred income tax credits cushioned the impact of Chase's special real estate reserving for 1993's first quarter. More important, the underlying trend of gradually improving core franchise earnings, established over the past ten quarters, remains intact.
 Following the first quarter actions, coverage of nonperforming loans is now in the range of 65-70 percent, well above the weak level of 49 percent at Dec. 31, 1992.
 -0- 4/19/93
 /CONTACT: Fred W. DeBussey of Fitch, 212-908-0521/
 (CMB)


CO: Chase Manhattan Corp. ST: New York IN: FIN SU: RTG

KD -- NY047 -- 7232 04/19/93 09:41 EDT
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Publication:PR Newswire
Date:Apr 19, 1993
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