DUFF & PHELPS: CITICORP $350 MILLION SUBORDINATED NOTES RATED 'BBB'
CHICAGO, Aug. 11 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `BBB' (triple B) to Citicorp's $350 million offering of 6.75 percent subordinated notes. The non-callable notes were priced at par and are due Aug. 15, 2005. The credit trend for Citicorp is positive. Citicorp has taken aggressive steps to rebuild capital, reduce expense levels, exit or downsize less attractive businesses, and reconfigure the operating and management structure of the organization. Further, asset quality has shown improvement and loan loss reserves have been strengthened. All of these factors were evident in Citicorp's second quarter results. Net income equaled $446 million, .79 percent return on assets, compared with $143 million, .26 percent, in 1992. Importantly, operating margin continued to improve, equaling $1.965 billion in the second quarter compared with $1.25 billion in the year earlier period. The Tier 1 capital ratio equaled 5.7 percent at mid-year 1993 up from 4.3 percent at June 30, 1992. Commercial cash basis loans and other real estate owned declined to $7.3 billion at June 30, 1993, from a peak of $8.1 billion at Sept. 30, 1992. Positively, credit costs in general continue to decline which will positively affect future earnings as more operating margin revenues reach the bottom line. -0- 8/11/93 /CONTACT: Charles J. Orabutt, Jr., CPA, of Duff & Phelps Credit Rating Co., 312-368-3153/ (CCI)
CO: Citicorp ST: New York IN: FIN SU: RTG
MP -- NY065 -- 1703 08/11/93 12:53 EDT
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|Date:||Aug 11, 1993|
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