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MELLON BANK CORP. 'A-' SENIOR DEBT ON FITCHALERT POSITIVE AFTER ANNOUNCEMENT -- FITCH FINANCIAL WIRE --

 NEW YORK, Dec. 6 /PRNewswire/ -- Mellon Bank Corp.'s (NYSE: MEL) "A-" senior debt rating is placed on FitchAlert with positive implications following its announcement of plans to merge with The Dreyfus Corp., (NYSE: DRY). Mellon Bank N.A.'s "A" long-term deposit and structured transaction ratings are also on FitchAlert positive.
 The positive indication reflects expected profitable shifts in the composition of total revenues, resulting in enhanced earnings, and stronger capital ratios for the merged company. With a likely closing date of midyear 1994, this merger will be a pooling-of-interest transaction with a current market value of $1.85 billion.
 The merger will enable the combined organization to generate approximately 51% of revenues, and more than one-half of net income, from non-interest related service fees. Mellon currently generates 41% of revenues from this source.
 Dreyfus' stockholders' equity is largely composed of cash and liquid market securities. Pro forma as of Sept. 30, 1993, the consolidated leverage ratio for the combined companies would have been 8.9% compared to 6.9% for Mellon only. Mellon's tangible common equity ratio would have also risen sharply on a similar pro forma basis.
 Pro forma return on assets (ROA) for the merged companies as of Sept. 30, 1993 would have been a strong 1.47%, combining Mellon's 1.24% ROA and Dreyfus' 10.92% ROA.
 At closing, Mellon's anticipates an after-tax restructuring charge of about $73 million to cover cost and fees related to the merger. Going forward, aggregate overhead expenses will benefit modestly from elimination of third-party contracted services and reducing duplication in specified support operations. The real test will be for the new company to minimize overhead expense growth while generating increased fee based revenues.
 -0- 12/6/93
 /CONTACT: Fred W. DeBussey of Fitch, 212-908-0521/
 (MEL DRY)


CO: Mellon Bank Corp.; The Dreyfus Corp. ST: IN: FIN SU: RTG

MP-PS -- NY099 -- 0939 12/06/93 16:25 EST
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Publication:PR Newswire
Date:Dec 6, 1993
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