National City, Comerica, Magna, and MAF downgraded by Kemper.

Kemper Securities Inc. analyst Thomas J. Maier downgraded four midwestern banks on Friday, citing rising interest rates.

The four banks, National City Corp., Comerica Inc., Magna Group Inc. and MAF Bancorp, have been some of the strongest bank stocks of late.

In particular, Comerica and National City have weathered the recent bank stock decline better than most.

But Mr. Maier said the prices of the four banks would not rise as much as he had anticipated in 1995. "It is hard to see what is out there that will affect banks beyond rate movements," he said. And with the likelihood of a Federal Reserve rate hike later this month, the analyst said he was forced to revise his ratings downward.

In fact, he held out the possibility of a recession next year if the Fed continued to raise rates.

"When that happens, you want to be in stocks with strong cultures and strong balance sheets," Mr. Maier said. Midwest banks that fall into that category, he said, are Banc One Corp., Norwest Corp., Keycorp, Hawkeye Bancorp., and FirstStar Savings Bank.

Mr. Maier set a 12-month price target of $29 on Comerica, $27 on National City, $21 on Magna Group, and $22 on MAF Bancorp. Mr. Maier said he lowered his ratings on Comerica and Magna to "long-term buy" from "strong buy" and National City and MAF Bancorp of Clarendon Hills, Ill., to "market performer" from "long-term buy."

Comerica finished down 37.5 cents at $27.25; National City was down 25 cents at $26.375; Magna declined 25 cents to $20.125; and MAF fell 31.2 cents to $21.25.

In other market news, UF Bancorp. stock surged $4.25 to close at a year-high of $36 after the $500 million-asset Evansville, Ind., thrift announced it had retained Kemper as a financial adviser.

UF said it was in discussion with one financial institution about a possible merger, after breaking off talks with a number of other suitors.

In a press release, UF Bancorp said it had hired Kemper to assist it in analyzing, structuring, negotiating, and effecting such a transaction.

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