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TRANSAMERICA FINANCE DEBT AFFIRMED BY FITCH AFTER CHARGE -- FITCH FINANCIAL WIRE --

 TRANSAMERICA FINANCE DEBT AFFIRMED BY FITCH AFTER CHARGE
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Jan. 9 /PRNewswire/ -- Transamerica Finance Corp.'s 'A+' senior debt, 'A' subordinated debt, and 'F-1' commercial paper ratings are affirmed by Fitch. This action follows the announcement of a $130 million charge in the company's commercial finance unit which caused a loss for the fourth quarter and year for the company. The credit trend remains declining.
 The problem portfolios are limited to about one quarter of the commercial portfolio and 11 percent of total TFC tangible assets. They include rental store and computer retailer receivables, as well as a residual liquidating portfolio which is mostly auto and fleet lease receivables. Having wrestled with asset quality problems in these sectors for five quarters, Transamerica management chose to aggressively reserve against these assets to facilitate an exit strategy. Though the economy will continue to moderately affect the rest of the commercial portfolio, these actions are expected to eliminate the losses in the commercial segment.
 The two other operations within Transamerica Finance, consumer loans secured by residential real estate loans and transportation equipment leasing, continue to perform well. The real estate portfolio has a heavy California concentration, with over half of its assets in that state, which drove an increase in delinquencies and chargeoffs over the course of 1991. Losses for the year nonetheless stayed in the low 1 percent range, and strong margins will preserve good profitability in the consumer unit if losses continue to trend up in 1992.
 The equity drain resulting from the charge is offset by a $100 million common equity contribution from parent Transamerica Corp. This capital will maintain leverage ratios at conservative levels with debt/tangible equity staying in the 6.5 times range. The balance sheet is also characterized by strong liquidity.
 -0- 1/9/92
 /CONTACT: Nancy E. Stroker of Fitch, 212-908-0533/ CO: Transamerica Finance Corp. ST: California IN: FIN SU: RTG


KD -- NY080 -- 8421 01/09/92 17:10 EST
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Publication:PR Newswire
Date:Jan 9, 1992
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