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PHH CORP. $50 MILLION SENIOR NOTES RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 PHH CORP. $50 MILLION SENIOR NOTES RATED 'A+' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, July 27 /PRNewswire/ -- PHH Corp.'s $50 million floating rate notes due July 22, 1994, are rated 'A+' by Fitch. The interest rate on the notes will float 220 basis points below the prime rate.
 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 has faced 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 resuming its earnings growth as the economy continue to improve.
 PHH is a corporate service company with a balance sheet similar to a finance company. Leverage, at 7.5 times total debt/equity as of the fiscal year ended April 30, 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, and Fitch does not expect that leverage will increase from current levels. On the funding side, PHH primarily uses commercial paper and medium-term notes to finance assets under management, matched with those assets to avoid interest rate risk. The investor base is diverse and commercial paper backup is adequate in the unlikely event of funding disruptions.
 -0- 7/27/92
 /CONTACT: Valerie Gerard of Fitch, 212-908-0577/
 (PHH) CO: PHH Corp. ST: Maryland IN: FIN SU: RTG


KD -- NY034 -- 3392 07/27/92 09:56 EDT
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Publication:PR Newswire
Date:Jul 27, 1992
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