BANKING & FINANCE - July 28, 1992

S&P; Cites Latin Nations’ Credit Gains: U.S. banks are “substantially over-reserved” against losses on loans to lesser developed countries, according to a study released by Standard & Poor’s Corp. The study attributes this development in large part to the improved credit worthiness of Latin America’s major debtors, S&P; said. At the peak in 1987, major U.S. lenders had a total exposure of $55 billion to developing countries against which they reserved $20 billion by the end of the decade. Since 1987 they have charged off $17 billion, and their total exposure has been reduced to $17 billion at year-end 1991, the rating agency said.