Printer Friendly

CHEMICAL BANK, TEXAS COMMERCE BANK CD/LOC RATINGS RAISED BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Oct. 7 /PRNewswire/ -- Chemical Bank's and Texas Commerce Bank, N.A.'s long- and short-term certificates of deposit and letters of credit are raised to "A+/F-1" from "A/F-1" by Fitch. In addition, the credit trend covering these banking subsidiaries as well as the parent company, Chemical Banking Corp., is revised to improving from stable. The ratings on the parent company's senior debt is affirmed at "A", subordinated debt at "A-", preferred stock at "BBB+", and "F-1" commercial paper.
 Chemical has emerged as a revitalized, more clearly focused banking company following its first year of combined operations with the former Manufacturers Hanover Corp. While the corporation faced several obstacles in 1992, its inaugural year, Chemical's solid core operating performance and balance sheet strengthening met forecasts provided when the megamerger was first announced.
 While the corporation now is less leveraged, more liquid, and boasts greater profitability, management still is adopting ambitious proposals for overhead expense reductions, which have already produced tangible benefits. Chemical is regaining its position as a pre-eminent corporate bank to compliment its retail and middle market business.
 Texas Commerce Bank, N.A., the corporation's Southwest subsidiary, has added the former First City Bancorp. of Texas's principal assets. The move is indicative of management's confidence in the bank's ability to create earnings and enhance franchise value from in-market acquisitions.
 Chemical's asset quality is improving. Reduction in nonperforming assets (NPAs) has accelerated as aggregate NPAs fell $1.23 billion, or 20 percent, during the six months ended June 30, 1993. However, the NPA ratio has not shown the same relative decline as the denominator of the equation, outstanding loans, continue to fall. This reduces the benefits that would translate to an accelerated improvement in this ratio. Loans accounted for 55 percent of the corporation's total assets at the end of 1993's first half, a sizable drop compared to 61 percent just 18 months earlier.
 Chemical's regulatory and generally accepted accounting principles capital ratios continue to strengthen, despite the acquisition of a majority of First City Bancorp.'s operations earlier this year. The corporation's Tier I risk-adjusted ratio grew to 7.6 percent as of June 30, 1993, up from a meager 5.1 percent just 18 months earlier. The key leverage ratio grew 200 basis points (bps) to 6.6 percent during the same period. Chemical's Tier I ratio is expected to close 1993 in the 7.80 percent-7.85 percent range.
 -0- 10/7/93
 /CONTACT: Fred W. DeBussey of Fitch, 212-908-0521/


CO: Chemical Bank; Texas Commerce Bank N.A. ST: New York, Texas IN: FIN SU: RTG

TS -- NY047 -- 9763 10/07/93 12:21 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 7, 1993
Words:441
Previous Article:BERLITZ AND PHH HOMEQUITY TEAM UP TO PROVIDE COMPREHENSIVE INTERNATIONAL RELOCATION SUPPORT
Next Article:ANGEL RESIGNS FROM READING & BATES CORPORATION
Topics:

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