Duff & Phelps Credit Rating Co. has assigned an A rating to Citicorp's $250 million subordinated note issue.

The 10-year noncallable notes carry a coupon of 6.375% and were priced to yield 6.42%. The issue qualifies as Tier 2 debt under regulatory guidelines. The proceeds are to be used for general corporate purposes.

The Duff rating reflects improvement in Citicorp's main business lines, tightened controls and oversight, and a renewed focus on business lines where CCI has a competitive advantage.

The ratings also reflect expectations for further strengthening of the balance sheet, recent and expected continued improvement in profitability and a strengthened credit administration process.

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