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FITCH ASSIGNS V-RATINGS TO $6.8 BILLION KIDDER CMO REMICS -- FITCH FINANCIAL WIRE --

 NEW YORK, Feb. 26 /PRNewswire/ -- Fitch assigns V-Ratings to eight CMO REMICs underwritten by Kidder, Peabody & Co. with an aggregate original principal of $6.8 billion. The issues are FHLMC 1449, FHLMC 1454, FHLMC 1463, FNMA 92-177, FNMA 92-G54, FNMA 93-1, FNMA 93-5, FNMA 93-8. This raises the total number of rated deals to 733, encompassing 9,425 tranches and over $290 billion in original principal. The V-Ratings of the individual tranches in the deals are listed below.
 These eight deals are primarily PAC (Planned Amortization Class) structures with a couple of SEQ (Sequential Pay) and TAC (Targeted Amortization Class) structures. In the PAC deals one typically sees PACs ranging from V1 to V3, with companions and secondary PACs ranging from V3 to V5. The SEQ deals typically don't have any V1 bonds because there is no companion to absorb the prepayment risk. Even short average lived sequential pay tranches are almost always rated V2, whereas short PACs are frequently V1.
 FNMA 1993-1, a 30 year deal backed by 8.5 percent collateral, uses a PAC structure. The only tranches that are V4 or V5 are the inverse floaters. The companion bonds are mostly floater/ inverse floater pairs, with a support PAC, and a support TAC. There are more V3 bonds, and fewer V2 bonds, mostly because of the smaller companion size. The longer PACs are well protected from large prepayments swings. Only a continued dropping of mortgage rates, lasting for several years would drastically shorten them.
 Fitch V-Ratings offer a common, independent framework for evaluating CMO performance under 13 different interest rate scenarios. The ratings, scaled V1 through V5, provide a relative measure of each tranche's total return, price, and cash flow variability given changing interest rates. Securities rated V1, V2, or V3 perform predictably over a range of interest rate scenarios, and indicate low to moderate market volatility. Those securities rated V4 or V5 have the potential for greater market volatility, and may perform less predictably under stressful interest rate scenarios.
 V-Ratings are available on Bloomberg by typing "FVR" and pressing "GO", Telerate beginning on page 26300 and Knight Ridder Money Center beginning on page 5300.
 FHLMC 1449
 A:V1, B:V1, C:V1, D:V1, E:V2, F:V1, G:V2, GA:V2, GB:V2, GC:V2, H:V2, HA:V2, HB:V2, J:V3, K:V5, KA:V2, KB:V4, KC:V3, KD:V5, KE:V4, KF:V4, LA:V3, LB:V5, M:V3, N:V5, O:V3, P:V5, Q:V5, S:V4, SA:V3
 FHLMC 1454
 A:V1, B:V1, C:V1, D:V1, E:V2, FA:V2, FB:V4, H:V3, J:V3, JG:V5, K:V3, L:V1, LP:V5, M:V2, MJ:V3, N:V2, NA:V2, OA:V3, P:V3, Q:V5, S:V4, SB:V5, T:V3
 FHLMC 1463
 A:V2, B:V4, C:V3, D:V5
 FNMA 92-177
 AB:V2, AC:V2, AD:V3, AE:V3, AG:V3, FA:V2, SA:V4, A:V2, B:V3, FB:V2, SB:V4, C:V4, CA:V4, CB:V4, D:V4, F:V2, S:V4, FC:V2, SC:V4
 FNMA 93-1
 A:V1, B:V1, C:V1, D:V1, E:V2, EA:V2, EB:V3, G:V3, H:V3, HA:V3, J:V3, N:V2, O:V2, F:V2, S:V4, FA:V3, SA:V5, FB:V3, SB:V5
 FNMA 93-5
 A:V1, B:V1, C:V1, D:V1, E:V2, G:V3, H:V3, J:V2, JA:V4, M:V3, MA:V4, F:V3, S:V5, FA:V3, SA:V5
 FNMA 93-8
 A:V1, B:V1, C:V1, D:V1, E:V2, G:V2, FB:V2, SB:V4, SC:V4, H:V3, HA:V4, J:V2, K:V3, L:V2, F:V3, S:V5, FA:V3, SA:V5
 FNMA 92-G54
 A:V2, AC:V2, B:V4, C:V4, D:V4, VA:V1, VB:V1, VC:V2, VD:V3, VE:V3, Z:V5, ZQ:V5, F:V2, S:V3, IO:V3
 -0- 02/26/93
 /CONTACT: Brandon H. Einhorn, 212-908-0672, or Henry H. Wilson 212-908-0617, both of Fitch/


CO: Kidder, Peabody & Co. ST: New York IN: FIN SU: RTG

AH -- NY047 -- 0935 02/26/93 15:12 EST
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Date:Feb 26, 1993
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