DUFF & PHELPS: FLEET FINANCIAL GROUP $150 MILLION SUBORDINATED NOTES RATED 'BBB+'
CHICAGO, Feb. 23 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of BBB+' (triple B plus) to Fleet Financial Group's $150 million offering of subordinated notes. The 6 7/8 percent notes were priced at par. The rating reflects Fleet's solid capital and reserve position, diversified earnings stream and long-term positive outlook. Fundamentals have improved considerably since the July 1991 government- assisted acquisition of Bank of New England. Asset quality appears to be stabilizing after experiencing substantial deterioration in the real estate loan portfolio. Recent actions taken by management have significantly strengthened the balance sheet of the Corporation. In the fourth quarter Fleet completed the bulk sale of $500 million in loans, much of which were on nonperforming status. Nonperforming assets declined $434 million in the fourth quarter to 3.68 percent of loans and other real estate owned from 5.26 percent and 5.89 percent three months and twelve months earlier, respectively. Reserves are strong at 3.86 percent of loans and 137 percent of nonperforming loans at December 31, 1992. Stockholders' equity equaled 6.41 percent of assets at yearend 1992 and the Tier 1 risk-based ratio equaled 10.38 percent. Subsequent to yearend, Fleet completed a common stock offering which raised in excess of $350 million. This will enhance already solid capital measures. Fourth quarter net income equaled $82 million which was a return on assets of .72 percent. Positively, the geographic and product diversification inherent in Fleet's broad business operations provides a measure of protection from regional economic problems. Fleet Financial Group, Inc., is a $47 billion diversified financial services company with 1,300 offices nationwide. Lines of business include commercial and consumer banking, mortgage banking, consumer finance, asset-based lending, trust banking, student loan processing, and investment banking. -0- 2/23/92 /CONTACT: Charles J. Orabutt, Jr., CPA of of Duff & Phelps Credit Rating Co., 312-368-3153/ (FLT)
CO: Fleet Financial Group ST: Rhode Island IN: FIN SU: RTG
KD -- NY092 -- 9589 02/23/93 16:42 EST
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|Date:||Feb 23, 1993|
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