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GREYHOUND FINANCIAL $750 MILLION SENIOR DEBT SHELF RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --

GREYHOUND FINANCIAL $750 MILLION SENIOR DEBT SHELF RATED 'A' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Feb. 10 /PRNewswire/ -- Greyhound Financial Corp.'s (GFC) $750 million senior debt shelf registration is rated 'A' by Fitch. The credit trend is stable.
 The 'A' rating reflects GFC's strong asset quality as demonstrated by its resilience during the current recession. The maintenance of a diversified but well focused portfolio and adherence to tight underwriting standards have insulated GFC from typical recession-related asset quality deterioration. Net chargeoffs have remained well under control, staying in the 0.33 percent range for the past three years. Profitability remains consistent due to excellent expense control and moderate provisioning. The balance sheet is solid, benefiting from strong asset quality as well as management's conservative funding practices.
 On Nov. 21, the board of directors of The Dial Corp, GFC's parent, authorized a major corporate restructuring which effectively spins off Dial's financial services businesses to its shareholders. This tax-free transaction received Securities and Exchange Commission approval on Feb. 5 and is still subject to shareholder approval. Upon completion of the spin-off, GFC Financial Corp., with $2.5 billion in assets, will be the new parent company for Dial's three financial services companies: Greyhound Financial, Greyhound European Financial Group, and Verex Corp., a mortgage insurer. Under the new corporate structure, Greyhound Financial will assume the European operations and will represent 87 percent of total GFC Financial assets. In order to preserve the current debt ratings of GFC, The Dial Corp wrote down all non-earning assets in the European portfolio to very conservative valuations prior to the spin-off. As a result, all asset quality measures for the new Greyhound Financial will approximate current GFC non-earning and chargeoff levels, and will therefore be in line with the 'A' rating. Leverage for the new finance company will improve to a more conservative 5.25 times debt-to- equity measure given its asset mix, versus 7.13 times at GFC as of Sept. 30.
 Greyhound Financial pursues a tightly focused commercial finance niche strategy which targets middle market customers whose financing needs of $2-20 million are typically too small for other lenders. The five business lines include commercial real estate, communications, transportation, corporate finance and recreational receivables financing. Greyhound Financial is headquartered in Phoenix, Ariz.
 -0- 2/10/92
 /CONTACT: Valerie Gerard of Fitch, 212-908-0500/
 (DL) CO: Greyhound Financial Corp. ST: Arizona IN: FIN SU: RTG


JT -- NY082 -- 8444 02/10/92 16:14 EST
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Publication:PR Newswire
Date:Feb 10, 1992
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