DUFF & PHELPS: BANK OF BOSTON $100 MILLION SUBORDINATED NOTES RATED 'BBB'; $70 MILLION PREFERRED STOCK RATED 'BBB-'
CHICAGO, June 25 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of "BBB" (triple B) to Bank of Boston Corporation's $100 million 6 7/8 percent subordinated note issue. The noncallable notes are due July 15, 2003, and were priced to yield 6.893 percent to maturity. A rating of "BBB-" (triple B minus) is assigned to an offering of 2.8 million depositary shares of preferred stock at $25 per depositary share. The preferred offering was priced with an annual dividend rate of 7 7/8 percent. The ratings reflect the overall stable financial condition of Bank of Boston. Asset quality, profitability, capitalization, and liquidity measures showed substantial improvement in 1992 and this favorable trend continued in the first quarter of 1993. After peaking at nearly $2 billion, 9.00 percent of loans and Other Real Estate Owned, in the first quarter of 1991, nonperforming assets equaled a low 2.69 percent at March 31, 1993. Nonperformers are now at their lowest level in seven years. The acquisition of Society for Savings and Multibank Financial Corporation will bring higher levels of nonperformers but management has demonstrated an ability to resolve problem assets effectively. Excluding extraordinary items, Bank of Boston reported first quarter net income of $50 million, .64 percent return on assets. Profitability has flattened somewhat as revenue growth has been slow to materialize given the still sluggish New England economy. Capital measures have strengthened significantly over recent years. The leverage ratio equaled 6.8 percent at March 31, 1993, compared to 4.9 percent and 4.5 percent, one year and two years earlier, respectively. Tier 1 leverage equalled 7.2 percent at the close of the first quarter compared to 5.3 percent at March 31, 1992. Bank of Boston, a super-regional bank holding company with both national and international operations, reported total assets of $31.6 billion at March 31, 1993. Major banking subsidiaries include The First National Bank of Boston, Casco Northern Bank, N.A., in Maine, Bank of Boston Connecticut, Rhode Island Hospital Trust National Bank, and Bank of Vermont. -0- 6/25/93 /CONTACT: Charles J. Orabutt, Jr., CPA, of Duff & Phelps Credit Rating Co., 312-368-3153/ (BKB)
CO: Bank of Boston Corporation ST: Massachusetts IN: FIN SU: RTG
LG -- NY016 -- 5662 06/25/93 10:35 EDT
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|Date:||Jun 25, 1993|
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