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FLEET MORTGAGE GROUP COMMERCIAL PAPER RATED 'F-1', MEDIUM TERM NOTES 'A' BY FITCH -- FITCH FINANCIAL WIRE --

FLEET MORTGAGE GROUP COMMERCIAL PAPER RATED 'F-1', MEDIUM TERM NOTES
 'A' BY FITCH -- FITCH FINANCIAL WIRE --
 NEW YORK, Aug. 17 /PRNewswire/ -- Fleet Mortgage Group, Inc.'s $750 million medium-term note program is rated 'A' and its commercial paper is rated 'F-1' by Fitch. There are no commercial paper or medium term notes outstanding. The company plans to issue shortly $150 million of medium-term notes to replace existing debt.
 The ratings reflect the company's consistent long-term earnings, strong balance sheet, conservative management practices, and low-risk profile in a cyclical industry. The credit trend is stable.
 Fleet Mortgage Group is the second largest mortgage banking company with a $60.6 billion servicing portfolio as of June 30, 1992. Having been in the mortgage banking business for twenty years, the company has built a valuable franchise with strong origination capacity. The servicing portfolio, which consists mostly of VA/FHA loans, has grown at a compound annual rate of 19.5 percent over the past four and one-half years.
 Fleet Mortgage posted strong earnings of $51.9 million (before pro forma adjustments of $5.8 million) for 1992's first six months, compared to $36.5 million for the same period one year earlier.
 Earnings have benefited from a larger servicing portfolio, wider net interest margins, and its low expense base. Earnings have grown at a compound annual growth rate of roughly 37.7 percent over the past five years.
 Fleet Mortgage was recently spun off from parent Fleet Financial Group in an initial public offering. Fleet Financial contributed $44 million of equity to the company and still retains 80.1 percent ownership. Capital was strengthened through these transactions to $418 million. Fleet carries its servicing portfolio conservatively at a book value of 95 basis points, well below current market value estimates. Hence, Fleet's equity should be well insulated from further declines in interest rates in the near term. Leverage is conservative at 3.7 times equity (pro-forma June 30, 1992) and is not expected to rise in the near term as the issuance of debt would replace existing debt. In addition to its liquid balance sheet, Fleet Mortgage maintains flexible and diverse funding sources and its commercial paper is backed up with bank warehouse facilities.
 -0- 8/17/92
 /CONTACT: Teri L. Seelig, 212-908-0638, or Nancy E. Stroker, CFA, 212-908-0533, both of Fitch/ CO: Fleet Mortgage Group, Inc. ST: IN: FIN SU: RTG


LD -- NY075 -- 0652 08/17/92 16:17 EDT
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Date:Aug 17, 1992
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