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FITCH ASSIGNS V-RATINGS TO A $961 MILLION KIDDER CMO REMIC -- FITCH FINANCIAL WIRE --

 NEW YORK, Jan. 29 /PRNewswire/ -- Fitch assigns V-Ratings to a CMO REMIC underwritten by Kidder, Peabody & Co. The deal, FNMA 1992-204, has an original principal amount of $961 million. The V-Ratings of individual tranches in each of the deal are listed below. This brings the total number of V-Rated deals to 725, encompassing 9,284 tranches and over $284 billion in original principal.
 This deal's composition is a throw back to the early days of CMOs before the now dominant Planned Amortization Class (PAC)/Support class structure. PAC/Support class issues tend to isolate volatility in the support tranches. In contrast, FNMA 1992-204 uses Targeted Amortication Classes (TACs), Supports, and Sequential Pay tranches in combination with fixed, floating rate and inverse floating rate coupons to widely disperse its underlying volatility. As a result, there are no V1 tranches, but 81 percent of the principal has a V2 rating. This puts most of the issue in the same volatility range as 10-year U.S. Treasury Notes, instead of the V3 category of its underlying collateral.
 Fitch V-Ratings offer a common, independent framework for evaluating CMO performance under 13 divergent 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 pressing "FVR" and "GO", Telerate beginning on page 26300, and Knight Ridder Money Center beginning on page 5300.
 FNMA 1992-204
 A:V2, FC:V2, SC:V3, SD:V4, B:V3, C:V3, FG:V2, SG:V5, FE:V2, SE:V5, F:V3, S:V5, FA:V2, SA:V3, SB:V3,
 -0- 1/29/93 R
 /CONTACT: Henry H. Wilson, 212-908-0617, or Brandon H. Einhorn, 212-908-0672, both of Fitch/


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

LR -- NY067R -- 0860 01/29/93 15:12 EST
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Date:Jan 29, 1993
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