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FITCH REVISES HOMES SAVINGS AND GREAT WESTERN CREDIT TRENDS -- FITCH FINANCIAL WIRE --

 FITCH REVISES HOMES SAVINGS AND GREAT WESTERN CREDIT TRENDS
 -- FITCH FINANCIAL WIRE --
 NEW YORK, July 1 /PRNewswire/ -- The 'A' senior debt ratings of Homes Savings of America, Great Western Financial Corp., and Great Western Bank are affirmed. Home Savings' credit trend is revised to declining from stable and the trends of both Great Western Financial and its bank subsidiary are changed to uncertain from stable. Also affirmed are: Great Western Bank's 'A-' subordinated debt and 'F-1' commercial paper, Great Western Financial's 'BBB' preferred stock, and Home's 'A-' subordinated debt and 'F-1' commercial paper.
 The revised trends of the two largest U.S. savings banks reflect deteriorating asset quality due mostly to the depressed California economy. This has been reflected in the sizable increase in single family residential mortgage loan nonperforming assets. However, Fitch believes that Great Western's relatively stronger capital base and core earnings will lessen the impact of further asset quality deterioration.
 Home's nonperforming assets, excluding 90 day delinquencies, were 6.23 percent of total loans and real estate owned as of March 31, 1992, having increased from 5.37 percent at Dec. 31, 1991. Great Western's nonperforming assets, including 90 day delinquencies, were 5.58 percent of total loans and real estate owned as of March 31, 1992 and 4.93 percent at year-end.
 Home's earnings were weakened by the deteriorating asset quality. Reported net earnings have benefited largely from mortgage-backed securities gains in 1991 and a one-time tax benefit in 1992's first quarter. Great Western's first quarter 1992 earnings also benefited from a one-time tax benefit due to an accounting change, but its overall core earnings have showed positive trends. However, due to increased acquisition activity, Great Western's operating expenses are somewhat high with general and administrative expenses annualized at 2.25 percent of average assets. Great Western's 1991 return on assets was .75 percent while Home's return on assets was .49 percent.
 Both institutions exceed regulatory capital minimums. As of March 31, 1992 Home's risk-based capital ratio was 10.53 percent (7.2 percent required), core capital ratio was 5.09 percent (3.0 percent required) and tangible capital ratio 4.33 percent (1.5 percent required). Great Western Bank's capital ratios as of March 31, 1992, were 9.63 percent for risk-based capital, 5.06 percent for core capital ratio and 5.06 percent for tangible capital.
 -0- 7/1/92
 /CONTACT: Teri L. Seelig of Fitch, 212-908-0638/
 (GWF) CO: Great Western Financial Corp.; Home Savings of America; Great
 Western Bank ST: California IN: FIN SU: RTG


SM -- NY111 -- 5910 07/01/92 17:00 EDT
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Date:Jul 1, 1992
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