Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, April 12, 1990 TAG: 9004120184
SECTION: BUSINESS PAGE: C5 EDITION: METRO
SOURCE:
DATELINE: LENGTH: Short
Everett Hurst, a broker with A.G. Edwards & Sons, said the stock closed at 16] on an exchange of 132,000 shares. That put Dominion three-quarters of a point below Friday's close.
Also Wednesday, Fitch Investors Service announced it was lowering its rating of Dominion Bankshares 7.75 percent sinking fund debentures due in 1996 from A+ to BBB+. The rating action affects roughly $8.7 million in debt, Fitch said.
"The downgrade reflects the greater loss potential in Dominion's real estate construction and commercial mortgage portfolio due to weakening in some segments of the Virginia and Tennessee markets," Fitch said.
Dominion expects the bulk of the increase in non-performing loans to come from residential construction, Fitch said.
Moody's decreased Dominion's debenture rating Monday from A2 to A3.
The bank announced late Friday that it would delay issuing a first-quarter report until completion of a federal audit of its real estate portfolio. Dominion said it expects a requirement for an addition to its loan loss reserves under tighter federal guidelines. That would impact its quarterly and annual earnings.
The stock dropped 1 3/4 points Monday to 15], then recovered a half-point Tuesday. Investors traded 410,000 shares Monday and 519,900 Tuesday compared with the usual average of 125,000. - Staff reports
by CNB