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NATIONSBANK 'A+' SENIOR DEBT AFFIRMED BY FITCH AFTER MNC ANNOUNCEMENT --FITCH FINANCIAL WIRE (FFW)--

NATIONSBANK 'A+' SENIOR DEBT AFFIRMED BY FITCH AFTER MNC ANNOUNCEMENT
 --FITCH FINANCIAL WIRE (FFW)--
 NEW YORK, July 17 /PRNewswire/ -- NationsBank Corp.'s 'A+'senior debt shelf registration is affirmed by Fitch following the company's announcement of a plan to invest $200 million in MNC Financial Corp. NationsBank's 'A' subordinated debt and 'A-' preferred stock shelf registration are also affirmed, as are the 'A+/F-1' certificates of deposit of NationsBank subsidiary banks.
 The ratings also apply to securities issued by any of the companies which merged to form NationsBank Corp.: NCNB Corp., C&S/Sovran Corp., and Tennessee Valley Corp. These companies' securities were assumed by NationsBank Corp. The credit trend is improving.
 The MNC transaction is in the form of a stake-out investment of non- voting preferred stock with an attached merger option. This is a well positioned preemptive move that, if completed, would protect and further enhance NationsBank's market share in Maryland, Virginia, and the District of Columbia. This action is evidence of the recognized banking acumen of senior management which Fitch cited as a critical variable in its June 1992 research report on NationsBank.
 The downside to this proposed transaction is limited to the recovery of the corporation's initial investment, which Fitch views would be a very nominal cost for this strategic move.
 No reduction in NationsBank capital ratios would result because of this investment. In addition, the transaction is contingent on receiving assurances from federal regulators that NationsBank would not be required to be a "source of strength" to MNC or be included in any "cross-guaranty" provisions of various regulatory requirements.
 Reflected in the 'A+' rating are NationsBank's broadly diversified base of core retail funding, improving reserve coverage of nonperforming loans, expected material savings in overhead expenses which will enhance growing profitability, moderate loan to asset ratio, and above peer capital ratios.
 NationsBank's market position in the region from the mid-Atlantic to Texas gives it access to a meaningful supply of core deposits. While this region is not without significant competitors, NationsBank's penetration will enable it to be a leader in liability product pricing, a strategy which Fitch expects the corporation to fully implement.
 -0- 7/17/92
 /CONTACT: Fred W. DeBussey of NationsBank, 212-908-0521/
 (NB) CO: NationsBank Corp. ST: IN: FIN SU: RTG


TQ -- NY026 -- 0200 07/17/92 11:18 EDT
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Publication:PR Newswire
Date:Jul 17, 1992
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