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

 NEW YORK, Feb. 19 /PRNewswire/ -- NationsBank Corp.'s 'A+' senior debt, 'A' subordinated debt, and 'A-' preferred stock ratings are affirmed by Fitch following the announcement that NationsBank will exercise its option to acquire MNC Financial Inc. MNC is a Baltimore- based banking company with total assets of $16.7 billion. NationsBank's credit trend is improving.
 NationsBank's original stake-out investment was accomplished last July when the corporation invested $200 million in MNC. Accompanying that investment was the right to acquire all of MNC, based on a formula related to MNC's book value. While the application process and other approvals will take some months, Fitch expects the transaction to be completed before the end of the third quarter. The transaction will be treated as a purchase for accounting purposes, which will permit NationsBank to bring MNC assets onto its books at realizable values. This will help mitigate the impact of the relatively elevated level of nonperforming assets at MNC.
 More important, however, is the likelihood that recent asset quality registered by MNC could accelerate. This could be accomplished via write-offs as well as possible bulk sales of selected asset pools. Also, MNC's restatement of its 1992 results to capture the benefits of FASB No. 109, which accounts for deferred income taxes, is a positive. This restatement boosted MNC's 1992 earnings by about $60 million to $103 million. Since one of the accounting tests necessary to book the financial impact of FASB No. 109 is the likelihood of earnings in near- term accounting periods, this restatement is a favorable development.
 While the actual asset quality and capital ratios for the new company will not be clear until nearer the expected September 1993 closing date, Fitch expects the all-in ratio impact to be neutral to positive. Fitch also expects beneficial rewards from the inherent franchise value in MNC's operating territory and related cost savings.
 -0- 2/19/93
 /CONTACT: Fred W. DeBussey of Fitch, 212-908-0521/
 (NB)


CO: NationsBank Corp. ST: South Carolina IN: FIN SU: RTG

PS -- NY034 -- 8387 02/19/93 12:21 EST
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Date:Feb 19, 1993
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