George Salem, an analyst at Prudential Securities, cut his rating on Banc One Corp. from "buy" to "hold," citing the bank's big exposure to interest rate swaps.

Mr. Salem is the first analyst to change a rating of Banc One, or any other bank, because of its extensive use of swaps. By his reckoning, Banc One has a bigger portfolio of swaps than any other regional bank, and that portfolio has increased significantly this year.

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