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NATIONSBANK CREDIT RATINGS ESTABLISHED

 NATIONSBANK CREDIT RATINGS ESTABLISHED
 CHICAGO, Jan. 2 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has


assigned credit ratings to NationsBank (NYSE: NB), the entity formed through the merger of NCNB Corporation and C&S/Sovran Corporation. The senior debt of NationsBank has been assigned a rating of 'A' (Single A) and the subordinated debt 'A-' (Single A Minus). The commercial paper has been rated Duff 1+ (One Plus), Duff & Phelps' highest short-term rating. The ratings for NCNB Corporation, senior debt formerly rated 'A+' (Single A Plus), have been withdrawn while the ratings for C&S/Sovran Corporation, senior debt formerly rated 'A-' (Single A Minus) will reflect the new NationsBank ratings.
 The following ratings have been applied to the major banking subsidiaries of NationsBank:
 Institution Short-Term Rating Long-Term Rating
 NationsBank of Texas, Duff 1+ (One-Plus) 'AA-'
 N.A.
 NationsBank of North Carolina, Duff 1 'A+'
 N.A.
 NationsBank of Georgia, N.A. Duff 1+ (One-Plus) 'A+'
 NCNB National Bank of Florida Duff 1 'A+'
 Citizens and Southern National Duff 1 'A+'
 Bank of Florida
 NCNB National Bank of Duff 1 'A+'
 South Carolina
 Citizens and Southern National Duff 1 'A+'
 Bank of South Carolina
 NationsBank of Virginia, N.A. Duff 1 'A'
 NationsBank of Tennessee Duff 1 'A'
 NationsBank of Maryland Duff 1 'A'
 The ratings reflect such positives as NationsBank's leading position in a broad range of geographic markets and product lines, its significant earnings power, adequate capitalization, and above average liquidity countered by the assumption of a substantial amount of problem assets and a moderate level of parent company double leverage.
 Further, while management has experience in previous acquisitions, the absolute size of this transaction presents special challenges, i.e., the diversity of locations, businesses, data and information systems, which will require significant management time and resources.
 NationsBank has the largest retail delivery system in the United States with a leading deposit market share in five major southern states, Georgia, North Carolina, South Carolina, Texas and Virginia, and ranks no lower than number three in other states where it has operations, Florida (number two), Maryland (number three), and Tennessee (number three). NationsBank will also be a national leader in several fee-based businesses including mortgage servicing, problem asset management, credit card, and cash management.
 This strong position in a number of attractive markets provides broad risk diversification as well as enhanced earnings prospects. However, NationsBank will hold a significant amount of problem assets as a result of the merger, mainly originating from C&S/Sovran Corporation, which will require an extended period of time to resolve. C&S/Sovran incurred substantial problems in its Mid-Atlantic region operations as a result of aggressive real estate lending, particularly in land and land development. Resolution of these problem real estate loans, and to a lesser extent problem real estate loans in the Southeast region of the former NCNB Corporation, will constrain profitability over the mid-term. Capital measures are consistent with the current rating with stockholders' equity estimated at about 5.8 percent of assets at Dec. 31, 1991. Capitalization measures should benefit longer-term from the strong core earnings power of the corporation as asset quality problems subside and earnings retention grows.
 Charlotte-based NationsBank was formed Dec. 31, 1991, with the merger of NCNB Corporation and C&S/Sovran Corporation. Total assets of the combined company based on Sept. 30, 1991, assets approximated $119 billion, making NationsBank the third largest U.S. bank holding company at Dec. 31, 1991.
 -0- 1/2/92 R
 /CONTACT: Charles J. Orabutt, CPA of Duff & Phelps, 312-368-3153/
 (NB) CO: NationsBank ST: Illinois IN: FIN SU: RTG


CM -- NY078 -- 6394 01/03/92 09:07 EST
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Date:Jan 3, 1992
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