DUFF & PHELPS: SHAWMUT NATIONAL CORPORATION $150 MILLION SUBORDINATED NOTES RATED 'BB+'
CHICAGO, April 22 /PRNewswire/ -- Duff & Phelps Credit Rating Co. announced today that it has assigned a rating of "BB+" (double B plus) to Shawmut National Corporation's offering of $150 million of 7.20 percent subordinated notes. The noncallable notes were priced to yield 7.228 percent to maturity and are due April 15, 2003. The rating recognizes the overall improvement in the corporation's financial condition and operating performance. We believe Shawmut has established the framework for continued progress in its operating performance, including asset quality, profitability, and capital. While the improvement to date is clear, the long-term challenge, in our view, is the ability to increase core profitability (i.e., earnings before asset quality charges) given the weakness in the regional economy. Shawmut reported first quarter 1993 net income of $36.3 million, which equaled a return on assets of .80 percent. The quarter included four special items: a restructuring charge for branch closures and personnel reductions, a foreclosed property provision relating to the bulk sale of real estate loans and OREO, excess servicing write-downs, and a credit for adoption of FAS 109 (income taxes). Excluding these items, net income would have equaled $32.8 million, .55 percent return on assets. Progress in asset quality and capital measures also continued in the first quarter. Shawmut National Corporation is a super-regional bank holding company based in southern New England. Its principal subsidiaries are Shawmut Bank, N.A., based in Boston, and Shawmut Bank, Connecticut, based in Hartford. The corporation has developed an attractive franchise in the retail and middle-market areas serviced through a network of 311 branches. With total assets of $25.1 billion at March 31, 1993, the company ranks among the 30 largest U.S. bank holding companies. -0- 4/22/93 /CONTACT: Charles J. Orabutt, Jr., CPA of Duff & Phelps Credit Rating Co., 312-368-3153/ (SNC)
CO: Shawmut National Corporation ST: Massachusetts IN: FIN SU: RTG
TS -- NY076 -- 9466 04/22/93 12:43 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||Apr 22, 1993|
|Previous Article:||PITTWAY SPINS OFF APTARGROUP WHICH ACQUIRES PFEIFFER GROUP|
|Next Article:||MORTON INTERNATIONAL DECLARES QUARTERLY DIVIDEND|