
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, May 11, 1993                   TAG: 9305110073
SECTION: BUSINESS                    PAGE: B5   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Short

MOODY'S RAISES FIRST UNION'S RATINGS

Moody's has raised by two notches its ratings on the debt of First Union Corp. The rating agency said Monday the upgrade followed its assessment of First Union's successful track record in integrating its many recent acquisitions, including that of Roanoke-based Dominion Bankshares Corp. in March.

"As a result, the company has widened its franchise in the Southeastern United States, which has some of the best growth indicators in the nation," Moody's said.

Its announcement said the purchase of Dominion significantly increased First Union's nonperforming loans, but "these appear well reserved."

Moody's raised its rating on First Union senior debt from BAA1 to A2 and its subordinated debt from BAA2 to A3. Both are double upgrades.

The agency also upgraded First Union commercial paper from Prime-2 to Prime-1 and preferred stock from BAA2 to A3. It also upgraded the debt ratings of the company's subsidiary banks. - Staff report

by CNB