A BT Capital Trust II's $250 million 7.875% issue of trust-preferred securities has received an A rating from Fitch Investors Service.

The rating reflects the strong balance sheet and liquidity of Bankers Trust New York Corp. which owns 100% of the trust. The trust was formed solely to issue tax-advantaged securities and advance the proceeds to the banking company by purchasing junior subordinated debt.

Bankers Trust's senior debt is rated A-plus.

The issue will qualify as Tier 1 capital for the banking company, which will use the proceeds for general corporate purposes. Fitch's criteria for rating tax-advantaged preferred securities focuses on the strength of the junior subordinated debt issued to the trust.

Fitch believes it is unnecessary to make a rating distinction between the trust preferred stock and Bankers Trust's subordinated debt, due to the company's credit profile and low payment-deferral risks.

Rating concerns focus principally on the recent poor performance and historical volatility of the company's trading and derivatives businesses.

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