FIRST INTERSTATE <I> DEBT DOWNGRADED BY S/P
Standard and Poor's Corp said it
downgraded First Interstate Bancorp's 1.3 billion dlrs of debt
because of higher levels of non-performing assets.
    S and P also cited net charge-offs, especially in real
estate, energy and consumer loans. However, the agency said
First Interstate has high liquidity and is less vulnerable to
Latin American credits than its peers.
    Cut were the company's senior debt to AA-minus from AA and
subordinated debt to A-plus from AA-minus. Long-term deposits
of several of the parent's banks were reduced to AA-minus from
AA but short-term deposit ratings were left at A-1-plus.
 Reuter
