Standard and Poor's Corp said it placedthe subordinated debt of Guarantee Savings and Loan
Association, the principle unit of Guarantee Financial Corp, on
creditwatch with positive implications.
    About 57 mln dlrs of debt is affected.
    S/P said the move follows Gurantee's definitive agreement
to be acquired by Glendale Federal Savings and Loan, the fifth
largest S and L in the U.S.
    The combination with Glendale should enhance the
creditworthiness of Guarantee's debt, S/P said.
    Gurantee's subordinated debt is currently rated B.
 Reuter
