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CITICORP 'A' SENIOR DEBT AFFIRMED BY FITCH AFTER ANNOUNCEMENT -- FITCH FINANCIAL WIRE --

 CITICORP 'A' SENIOR DEBT AFFIRMED BY FITCH AFTER ANNOUNCEMENT
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Aug. 14 /PRNewswire/ -- Citicorp's 'A' senior debt rating is affirmed by Fitch. Also affirmed are Citicorp's 'A-' subordinated debt, its 'BBB+' preferred stock, and its 'F-1' commercial paper. The credit trend is uncertain.
 The affirmation reflects Citicorp's intensified efforts to boast its Tier I risk-adjusted capital ratio more quickly than previously expected, as well as corrective action taken to tighten managerial controls in Citicorp's residential mortgage operations.
 Citicorp today announced a restatement of second quarter 1992 earnings which will reduce the previously reported $171 million of net income by approximately $28 million. The reduction stems from a redefinition of the assumptions used to calculate the intangible asset relating to mortgage servicing and excess servicing rights. Corrective action within the mortgage unit has been taken to tighten managerial controls which had not been implemented as called for by Citicorp's internal procedures.
 In an unrelated matter, other real estate owned as of June 30, 1992, will now include approximately $150 million of residential real estates properties which had been previously included in non-accrual loans.
 The announced restatements should not overshadow the demonstrated improvement that Citicorp has made in substantially enhancing its core operating margin over the past six quarters. Continued improvement in the margin is expected.
 Citicorp is intensifying its focus on achieving a Tier I risk- adjusted capital ratio which could reach 5 percent by year-end 1992. This would be a full year ahead of the pace expected in Fitch's May 1992 Citicorp report. Helping to achieve this goal is a planned $650 million issue of preferred equity redemption cumulative stock (PERCS). Further, by year-end 1993, Fitch now expects that the Tier I ratio could be in a range of 6.0-6.25 percent as earnings, asset sales, and balance sheet realignment all combined to positively influence the ratio.
 As outlined in the corporation's second quarter 1992 10-Q filing with the SEC, Citicorp entered into a memorandum of understanding with its principal regulators in early 1992. The mildest form of regulatory agreements, the memorandum covers operating performance and capital issues but does not contain any trigger points or specific compliance dates. No regulatory initiatives are expected from this operational surveillance
 -0- 8/14/92
 /CONTACT: Fred W. DeBussey of Fitch, 212-908-0521/
 (CCI) CO: Citicorp ST: New York IN: FIN SU: RTG


CK -- NY087 -- 0222 08/14/92 17:28 EDT
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Date:Aug 14, 1992
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