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Arcadia Remains On RatingAlert Positive By Fitch IBCA

3 April 2000

Arcadia Remains On RatingAlert Positive By Fitch IBCA

    NEW YORK--March 31, 2000--The outlook for the `B' senior unsecured debt of Arcadia Financial Ltd. (Arcadia) remains on RatingAlert Positive by Fitch IBCA. Approximately $375 million of senior debt is outstanding. The rating was originally placed on RatingAlert Positive on Nov. 15, 1999 upon the announced merger of Arcadia and a subsidiary of Associates First Capital Corp. (`AFCC'). Under the merger agreement, AFCC Newco Inc., a wholly owned subsidiary of AFCC, will be merged into Arcadia. Arcadia will in turn become a wholly owned subsidiary of AFCC. Arcadia's shareholders are expected to vote on the merger agreement on March 31, 2000 and if approved, the merger is expected to close April 3, 2000.
    Based on the proxy statement filed March 3, 2000 by AFCC and Arcadia, AFCC will not assume or guarantee the senior unsecured debt of Arcadia at this time. As a result, while Fitch IBCA continues to maintain the RatingAlert Positive status on the senior unsecured debt, the ratings on these issues will not be equalized with those of `A+'-rated AFCC upon consummation of the merger. Previously, Fitch IBCA expected the ratings of Arcadia to be equalized with AFCC. Fitch IBCA will continue to monitor developments regarding the status of Arcadia's senior debt.
    Arcadia is a Minneapolis-based subprime automobile consumer finance company, that purchases, sells, and services retail installment contracts for new and used automobiles originated in 45 states. The company had managed receivables of $5.1 billion at Dec. 31, 1999.