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CHASE MANHATTAN SENIOR DEBT RAISED TO 'A-' BY FITCH, OFF ALERT -- FITCH FINANCIAL WIRE --

 NEW YORK, June 11 /PRNewswire/ -- Chase Manhattan Corp.'s (NYSE: CMB) senior debt rating is raised to "A-" from "BBB+" and removed from FitchAlert, where it was placed on April 19, 1993 with positive implications. Also, Chase's subordinated debt is raised to "BBB+" from "BBB" and preferred stock to "BBB" from "BBB-". The credit trend is improving.
 The action reflects the corporation's sale of approximately $649 million of new common equity. In addition to the primary offering, underwriters can sell three million more Chase common shares, which would increase the aggregate proceeds to approximately $737 million.
 An important component driving the positive FitchAlert was Chase's intention to increase its equity base as well as its previously announced decision to segregate approximately $2 billion in book value of commercial real estate; a significant change in Chase's workout philosophy for its troubled real estate portfolio. The 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 approximately $1 billion represents a sizeable reduction from the originally assigned contract values. Such reductions should mitigate the need for any further writedowns on these assets. Less than 20 percent of the remaining domestic commercial real estate loans are expected to be non-accruing.
 The use of $500 million of deferred income tax credits cushioned the impact of Chase's special real estate reserving on 1993's first-quarter financial performance.
 More important is Chase's underlying trend of the gradually improving core franchise earnings established over the past 10 quarters.
 -0- 6/11/93
 /CONTACT: Fred W. DeBussey, of Fitch Financial Wire, 212-908-0521/
 (CMB)


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

MP -- NY019 -- 0988 06/11/93 10:06 EST
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Publication:PR Newswire
Date:Jun 11, 1993
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