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

 GREYHOUND FINANCIAL CORP. $750 MILLION SHELF DEBT RATED 'A' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Aug. 25 /PRNewswire/ -- Greyhound Financial Corp.'s $750 million shelf registration of senior notes is rated 'A' by Fitch. The rating reflects the company's good and more predictable asset quality, strong management, and solid balance sheet. The credit trend is stable.
 Prior to its spinoff from The Dial Corp. earlier this year, GFC pursued a tightly focused commercial finance niche strategy which targeted 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. As part of the spinoff, GFC inherited Dial's portfolio of Latin American loans as well as the European finance unit which engages in consumer finance, aircraft, commercial real estate and equipment finance.
 Greyhound Financial's asset quality, the single most important variable for the company, has held up fairly well throughout the recession. Asset quality trends have deteriorated in conjunction with the spinoff, mostly attributable to disproportionately high levels of delinquencies in the U.K. consumer portfolio. As GFC assimilates its own tight collection procedures and stricter underwriting standards on the European portfolios, asset quality measures should improve across the board.
 To that end, total non-performers improved to 4.68 percent at the end of the second quarter as contrasted with 5.79 percent at year-end 1991 Absent the European portfolios, total non-performing assets were 3.38 percent, consistent with GFC's historical 3-4 percent benchmarks. Similarly, losses are down at 1.58 percent in the second quarter relative to the 3. percent at year-end 1991. Reserve coverage remains solid.
 Core profitability remains consistent due to excellent expense control and reduced provisioning. The balance sheet is solid, benefiting from strong asset quality as well as management's conservative funding practices. Capitalization is a conservative 5.77 times debt-to-equity measure given its asset mix.
 -0- 8/25/92
 /CONTACT: Valerie Gerard of Fitch, 212-908-0577/ CO: Greyhound Financial Corp. ST: Arizona IN: FIN SU: RTG


PS -- NY003 -- 3159 08/25/92 16:27 EDT
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Publication:PR Newswire
Date:Aug 25, 1992
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