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PHH CORP. $100 MILLION 4.5 PERCENT MEDIUM TERM NOTES RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

PHH CORP. $100 MILLION 4.5 PERCENT MEDIUM TERM NOTES RATED 'A+' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Dec. 13 /PRNewswire/ -- PHH Corp.'s $100 million 4.5 percent medium term notes due Dec. 16, 1992 are rated 'A+' by Fitch.
 The rating reflects the company's favorable business position and ability to manage risk. PHH has experienced good and consistent profitability through various economic cycles while operating in highly cyclical business lines - vehicle fleet management and home relocation services. The company is currently facing some profit erosion relative to prior years due to sluggish business conditions and significant investments in infrastructure. Nevertheless, the deterioration is only moderate and the company is well positioned to resume its record of earnings growth when the economy improves and markets are expanded with new products and geographic penetration.
 PHH is a corporate service company with a balance sheet similar to a finance company. Leverage, at about 9.0 times total debt/equity, has trended up over the past several years, but is acceptable due to the minimal amount of risk present on the balance sheet. Also, the company has been managing its capital ratios by securitizing and selling assets. On the funding side, PHH primarily uses commercial paper and medium-term notes to finance assets under management, and matches assets and liabilities to avoid interest rate risk. The investor base is diverse and commercial paper backup is adequate in the unlikely event of funding disruptions.
 -0- 12/13/91
 /CONTACT: Nancy E. Stroker, 212-908-0533, or Valerie Gerard, 212-908-0500, both of Fitch/
 (PHH) CO: PHH Corp. ST: Maryland IN: FIN SU: RTG


SM -- NY050 -- 2451 12/13/91 14:58 EST
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Publication:PR Newswire
Date:Dec 13, 1991
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