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PRUDENTIAL HOME MORTGAGE RECEIVES FIRST CREDIT RATINGS

 ST. LOUIS, Oct. 13 /PRNewswire/ -- Prudential Home Mortgage Company, Inc., one of the largest mortgage banks in the United States, said today that it has received an A-1 commercial paper rating and an A+ credit assessment rating from Standard & Poor's.
 Rick Thornberry, chief financial officer of Prudential Home Mortgage, said: "We are obviously very pleased with the ratings. They reflect S&P's assessment of the strength of our balance sheet and our overall performance as a company, particularly our ability to profitably grow originations and servicing. S&P also acknowledged the implicit support of our ultimate parent, The Prudential, and its commitment to residential services as a core business. We intend to begin tapping the commercial paper market in the near future. In addition to the positive effect on our borrowing costs, access to the commercial paper market will increase our flexibility and enable us to continue to expand our position within the residential mortgage market."
 Thornberry said that the company's net income was $67.5 million for the first half of 1993, a new record, and that its net value added for the same period was $87 million. Net value added is considered a truer measure of the company's performance, said Thornberry, because it adjusts GAAP income to reflect changes in off-balance sheet servicing value. He also noted that Prudential Home Mortgage expects to originate more than $40 billion in mortgages and grow its servicing base from $43 to $70 billion this year.
 Prudential Home Mortgage is a subsidiary of Residential Services Corporation of America (RSCA), a unit of The Prudential Insurance Company of America. Both Prudential Home Mortgage and RSCA are headquartered in Clayton, Mo., a suburb of St. Louis. Prudential Home Mortgage has major offices in Costa Mesa, Calif.; Edison, N.J.; Frederick, Md.; Minneapolis, Minn.; and Springfield, Ill.
 -0- 10/13/93
 /CONTACT: William Campbell, 212-546-2664, or J.B. King, 212-546-1484, both of Principal Communications/


CO: Prudential Home Mortgage Company, Inc. ST: Missouri IN: FIN SU: RTG

TM-LD -- NY008 -- 1491 10/13/93 08:30 EDT
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Publication:PR Newswire
Date:Oct 13, 1993
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