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GREYHOUND FINANCIAL

GREYHOUND FINANCIAL A' SENIOR DEBT, F-1' COMMERCIAL PAPER AFFIRMED BY
 FITCH -- FITCH FINANCIAL WIRE --
 NEW YORK, Nov. 21 /PRNewswire/ -- Greyhound Financial Corp.'s (GFC) ratings are affirmed following approval from Dial Corp.'s board of directors to spin off the financial services subsidiaries. Senior debt is affirmed at "A", subordinated debt at "A-" and commercial paper at "F-1." There is approximately $1.4 billion of senior debt outstanding, $74 million subordinated debt and $400 million commercial paper. The credit trend is stable.
 Once this tax-free spin-off to Dial shareholders is completed, GFC Financial Corp., with $2.4 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 and will represent 79 percent of total GFC Financial assets. In addressing the somewhat weaker asset quality of the U.K. operations, new equity will be infused by Dial Corp. and reserves will be built aggressively, preserving the integrity of the pro forma balance sheet. As a result, asset quality measures for the new Greyhound Financial will approximate current GFC delinquency and charge-off levels, and therefore be in line with the "A" rating. Leverage for the new finance company will improve to under 6 times debt-to-equity versus 7.1 times at GFC as of Sept. 30.
 GFC's ratings were upgraded in September reflecting the company's strong asset quality, which has been demonstrated by its resilience during the current recession. The maintenance of a diversified portfolio and adherence to tight underwriting standards as well as excellent account monitoring processes have insulated Greyhound Financial from typical recession-related asset quality deterioration. Management's commitment to preserving asset quality has translated into strong financial performance. Profitability remains consistent due to excellent expense control and moderate provisioning. The balance sheet is solid, benefitting from strong asset quality as well as management's conservative funding practices.
 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- 11/21/91
 /CONTACT: Valerie Gerard of Fitch, 212-908-0500/ CO: Greyhound Financial Corp. ST: Arizona IN: FIN SU: RTG SH -- NY079 -- 5949 11/21/91 13:42 EST
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Publication:PR Newswire
Date:Nov 21, 1991
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