GREYHOUND FINANCIAL CORPORATION $175 MILLION 9.13 PERCENT SENIOR NOTES RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --
GREYHOUND FINANCIAL CORPORATION $175 MILLION 9.13 PERCENT SENIOR
NOTES RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --
NEW YORK, Feb. 20 /PRNewswire/ -- Greyhound Financial Corp.'s (GFC) $175 million 9.13 percent senior notes due 2002 are rated 'A' by Fitch.
The 'A' rating reflects GFC's solid balance sheet attributable to strong asset quality and conservative funding practices. Adherence to tight underwriting standards and good account maintenance enabled GFC to avoid typical recession-related asset quality deterioration, with net charge-offs of 0.33 percent at historical levels. Profitability remains consistent due to excellent expense control and moderate provisioning.
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 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, represent 87 percent of total GFC Financial assets and continue to be the issuing entity for the new organization.
/CONTACT: Valerie Gerard of Fitch, 212-908-0577/ CO: Greyhound Financial Corp. ST: Arizona IN: FIN SU: RTG SM -- NY089 -- 1109 02/20/92 16:33 EST