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DUFF & PHELPS: CORESTATES CAPITAL CORP. $175 MILLION SUBORDINATED NOTES RATED 'A'

 CHICAGO, March 12 /PRNewswire/ -- Duff & Phelps Credit Rating Company has assigned a rating of A' (single A) to CoreStates Capital Corp's $175 million offering of 6-5/8 percent subordinated notes. The noncallable notes were priced to yield 6.718 percent to maturity and are due March 15, 2005. Debt issued by CoreStates Capital Corporation is guaranteed as to the payment of principal and interest by CoreStates Financial Corporation.
 The rating reflects the Corporation's strong earnings power, large capital base, and favorable competitive position as industry consolidation continues. These positives are offset to an extent by some weakening in asset quality due to the March 1990 acquisition of First Pennsylvania Corporation and weakness in the regional economy and real estate market. Positively, asset quality trends have improved over recent quarters and we expect additional improvement in 1993.
 Fourth quarter results were solid with net income of $69 million, up 17 percent from restated results in the year ago period, while return on assets equaled 1.20 percent for the fourth quarter of 1992 compared to 1.04 percent in 1991. A large net interest margin and strong noninterest income generation are the basis for the high level of profitability. Noninterest income equaled 2.07 percent of average assets in the fourth quarter, well above industry standards. CoreState's focus on several fee-based businesses, including electronic payment services, cash management and trust activities provides significant earnings diversification and an element of countercyclicality to its traditional banking business.
 CoreStates maintains an above average level of capital with stockholders' equity equaling 7.19 percent of assets at Dec. 31, 1992 and 7.11 percent excluding goodwill. Other balance sheet measures have also improved. Nonperforming assets equaled 2.49 percent of loans and other real estate owned at Dec. 31, 1992, compared to 2.86 percent and 3.07 percent three months and 12 months earlier, respectively. Loan loss reserves equaled 105 percent of nonperforming loans at year end 1992, the first time in two years in which the reserve exceeded nonperforming loans.
 Philadelphia-based CoreStates Financial Corporation is a multibank holding company reporting total assets of $23.7 billion at Dec. 31, 1992.
 -0- 3/12/93
 /CONTACT: Charles J. Orabutt Jr., CPA of Duff & Phelps Credit Rating Co., 312-368-3153/
 (CSFN)


CO: CoreStates Capital Corp. ST: Pennsylvania IN: FIN SU: RTG

WB -- NY030 -- 5480 03/12/93 11:51 EST
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Date:Mar 12, 1993
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