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CITICORP 'A' SENIOR DEBT AFFIRMED BY FITCH, CREDIT TREND NOW STABLE -- FITCH FINANCIAL WIRE --

 NEW YORK, May 11 /PRNewswire/ -- Citicorp's 'A' senior debt, 'A-' subordinated debt, 'BBB+' preferred stock, and 'F-1' commercial paper are affirmed by Fitch. The credit trend is revised to stable from uncertain.
 Citicorp recorded a meaningful turnaround in 1992 as its reorganization program, begun in 1991, was largely completed. Citicorp absorbed almost $11 billion of credit costs, $1 billion of restructuring expenses, and increased reserves by $1.5 billion during these two years. While these amounts indicate the magnitude of troublesome issues that confronted the corporation, Citicorp resolved many problems.
 Citicorp generated meaningful net income growth faster than Fitch anticipated. This is evidenced by success in building a much wider, sustainable gross operating margin and signs that credit-related costs will continue to decline; a combination that should boost earnings significantly. While the corporation constrained internal growth as well as possible acquisitions during the past two years, Citicorp is still dominant domestically and remains the U.S. bank with the most significant presence overseas.
 Citicorp's base of core operating margins, and resulting profitability, appears more sustainable than it has for some years. While staff reductions caused some near-term dislocations, Citicorp's two-year, five-point plan accomplished significant changes in the company's operating philosophy, benefiting personnel and financial resources.
 Citicorp has tightened its internal controls and monitoring systems after several well publicized miscues during 1992 in the mortgage banking operations. This more disciplined approach will strengthen its position with regulators. The memorandum of understanding, agreed to with its principal examination regulators, does not result in any operating constraints.
 While resumption of the common dividend is not expected before mid- 1994 at the earliest, Fitch anticipates 1993 net income to be a strong demonstration of Citicorp's renewed earnings momentum.
 -0- 5/11/93
 /CONTACT: Fred W. DeBussey of Fitch, 212-908-0521/
 (CCI)


CO: Citicorp ST: New York IN: FIN SU: RTG

SH -- NY065 -- 7110 05/11/93 13:44 EDT
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Publication:PR Newswire
Date:May 11, 1993
Words:314
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