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DUFF & PHELPS REAFFIRMS RATINGS ON ITT FINANCIAL CORPORATION

 CHICAGO, May 7 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has reaffirmed its ratings on ITT Financial Corporation following the announcement of ITT Financial's agreement to sell its domestic unsecured consumer loan portfolio. The reaffirmed ratings are as follows: senior debt, `A' (Single-A); subordinated debt, `A-' (Single-A-Minus); and commercial paper, Duff 1.
 ITT Financial will sell its unsecured consumer loan portfolio with a face value of $2.18 billion to a group led by Goldman, Sachs & Co. for $1.7 billion. Household Finance will have a 25 percent interest in the acquiring consortium and will service the loans. ITT Financial will retain a 15 percent interest in the portfolio. The receivables are being sold at just under 80 percent of book value. Financial had earlier established a special reserve of $796 million to cover future losses on the unsecured consumer loan portfolio and for consolidation of branch offices. Thus, the remaining reserve should be more than sufficient to cover the expenses of the branch consolidation. Duff & Phelps views the sale as positive, accelerating Financial's exit from the unsecured consumer loan business. The strategy going forward will be to focus the consumer portfolio on higher quality real estate secured lending.
 -0- 5/7/93
 /CONTACT: Philip M. Zahn of Duff & Phelps Credit Rating Co., 312-368-3154/
 (ITT)


CO: ITT Financial Corporation ST: New York IN: FIN SU: RTG

CK -- NY025 -- 5848 05/07/93 10:15 EDT
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Publication:PR Newswire
Date:May 7, 1993
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