DUFF & PHELPS: PNC FUNDING CORP. $250 MILLION SUBORDINATED NOTES RATED 'A+'
CHICAGO, Sept. 2 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of "A+" (single A plus) to PNC Funding Corp.'s $250 million offering of 6.125 percent subordinated notes due Sept. 1, 2003. The non-callable notes were priced to yield 6.156 percent to maturity. The securities are unconditionally guaranteed by PNC Bank Corp. The rating recognizes PNC's strong financial condition and well above average operating performance. PNC's balance sheet is characterized by an ample capital base with common equity equaling 7.32 percent of assets at June 30, 1993, sizable loan loss reserves which represented 200 percent of non-performing loans at mid-year 1993, and improving asset quality. Earnings have also been very strong with net income equaling $169 million, 1.35 percent return on assets, in the second quarter of 1993 compared with $128 million, 1.20 percent, in 1992. Reduced credit costs, excellent control of overhead expense and net interest margin expansion have all contributed to the strong earnings. Further, PNC has established strong competitive positions in several lines of business including retail banking, middle market commercial banking, and investment management, which will help PNC sustain its recent superior performance. -0- 9/2/93 /CONTACT: Charles J. Orabutt, Jr., CPA, 312-368-3153 of Duff & Phelps Credit Rating Co./ (PNC)
CO: PNC Funding Corp. ST: Pennsylvania IN: FIN SU: RTG
LG -- NY062 -- 8455 09/02/93 13:26 EDT
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|Date:||Sep 2, 1993|
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