Chevy Chase Bank Deposit Address

Fitch Affirms Large Regional Bank Ratings Following Industry Peer Review, Outlook Stable.

CHICAGO —
Fitch Ratings

An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris.
 has completed a peer review of the following
14 rated large regional banks: BB&T Corporation (
BBT
 basal body temperature.


n See technique, Buteyko breathing.
), Capital One
Finance Corporation (COF), Comerica Incorporated (
CMA

), Fifth Third
Bancorp (
FITB
 
),
Huntington Bancshares

 Inc (HBAN), Keycorp (KEY), M&T
Bank Corporation (
MTB

MTB Minus The Bear
MTB Mozilla Thunderbird
),
PNC Financial Services

 Group (
PNC

PnC Point ‘n Click
PNC Police National Computer
PNC People’s National Congress
PNC People’s National Congress
), Regions
Financial Corporation (RF),
SunTrust Banks

 Inc. (
STI
 systolic time intervals.
), US Bancorp (
USB

),
UnionBanCal Corporation (UBC),
Wells Fargo

 & Company (
WFC

WFC Wide-Field Camera
WFC World Financial Center
WFC Workforce Center
WFC World Federation of Chiropractic
WFC World Food Council
), and

Zions Bancorporation

 (ZION).

Refer to Wells Fargo’s individual release for a discussion of
rating actions taken on WFC.

RATING ACTION AND RATIONALE

All ratings were affirmed. CMA’s ratings were affirmed at
‘A’, but the Rating Outlook remains Negative reflecting
financial performance that continues to lag regional peers.
Conversely
  
intr.v. con·versed, con·vers·ing, con·vers·es
1. To engage in a spoken exchange of thoughts, ideas, or feelings; talk. See Synonyms at speak.

2.
,
HBAN’s, RF’s, ZION’s Rating Outlooks were revised to
Positive from Stable. HBAN’s Outlook was revised due to
improvements in its risk profile, earnings performance, and capital
profile. RF’s Outlook was revised given an improving overall risk
profile with moderating asset quality and the maintenance of a solid
capital and liquidity positions. ZION’s Outlook was revised to
Positive reflecting improving profitability, improving asset quality
ratios, and on balance modestly improved capital ratios. FITB’s
Rating Outlook remains Positive, supported by its strong earnings
profile, somewhat offset by still elevated levels of problem assets.

The Issuer Default Ratings (IDRs) span a relatively
disperse
 /dis·perse/ () to scatter the component parts, as of a tumor or the fine particles in a colloid system; also, the particles so dispersed.


v.
1.
 set of
ratings from higher rated WFC and USB (both ‘AA-‘) to RF and
ZION (both rated ‘BBB-‘). The majority of this peer group is
rated ‘A-‘ with a Stable Rating Outlook. The peer group is
generally comprised of three groupings of banks.

The first group is comprised of USB, WFC, BBT and PNC, whose ratings
are ‘AA-‘ or ‘A+’, supported mainly by strong
earnings profiles or moderate risk profiles. These companies have
demonstrated a strong level of consistency through the most recent
crisis, and stable earnings performance. Although non-performing assets
(NPAs) and/or net charge-offs (NCOs) increased for these companies, the
companies’ capital profiles and reserves were adequate to absorb
the associated losses.

The second group includes a much larger diverse set of companies
whose credit profiles includes various strengths, offset by some
attributes that keep them from being in the top segment. Ratings in this
grouping span from ‘A’ to ‘BBB+’/Rating Outlook
Positive. Companies in this grouping include UBC, COF, CMA, FITB, KEY,
MTB, and HBAN. Some of these companies continually report solid
earnings, namely FITB but the ratings still incorporate elevated credit
risk, or in the case of MTB, strong risk-adjusted earnings are offset by
a relatively low capital position. While other companies have strong
capital levels, KEY, UBC and CMA as examples, but whose core earnings
profiles lag the peer group.

The last group of large regionals includes STI, RF, and ZION,
companies that have lagged the large regional bank group during the
financial crisis in terms of earnings and asset quality, but recently
have shown improving trends. These banks are rated from ‘BBB+’
to ‘BBB-‘/Rating Outlook Positive. For these three banks,
weaker relative earnings performance is considered the major
weakness.

The large regional banks represent some of the highest rated banks
in Fitch’s global rating universe. Accordingly, it is unlikely that
there will be meaningful upward rating momentum for this group
collectively. However, a few institutions whose credit profiles have
been demonstrating continued relative progress, such as FITB, HBAN, RF,
and ZION, could see ratings improvement over the near-to-intermediate
term, as reflected in their Positive Outlooks. Company-specific rating
rationales are also described below, and a full list of rating actions
is provided at the end of this release. In addition, for further
discussion of the large regional bank sector in general, refer to the
special report titled ‘Large Regional Banks Periodic Review:
Situated Well for a Challenging Environment,’ to be published
shortly.

In terms of negative ratings pressures, Fitch expects all banks to
face challenges in terms of improving returns given the
flat yield curve

 and higher
capital requirements

. The flat yield curve and evolving
capital guidelines represent potential credit negatives over the
intermediate term for those large regional banks with weaker earnings
profile or capital positions. It is expected that all banks will
continue to focus on reducing expenses given the expectation that rates
will remain low over the next several years. The following rating
actions incorporate the expectation of further compression in bank
margins over the next year as higher cost deposit
repricing
 
 opportunities exhaust themselves. The ratings actions also incorporate
some pressure on reported net income as banks reduce the level of
reserve releases, and reverse course and begin to approach more
normalized levels of provisioning.

In addition to expectations of lower earnings due to the interest
rate environment and more normalized provisioning, there is the risk
that banks could seek ways to enhance returns, which may include
increasing risk appetites. Fitch does not currently see this as a rating
driver, but this could become one in the future. In particular, Fitch
has concerns over banks extending the duration of their securities
profile, or taking credit risk in either the loan or securities books.
When rates do rise, interest rate risk might present a credit negative
for some institutions. Banks originating and retaining long-dated
mortgages also remains a concern. Fitch’s ratings for the large
regional banks incorporate an expectation that interest rate risk will
be managed to avoid any material earnings contraction. If, interest rate
risk emerges to disrupt otherwise general improving earnings profiles
and such is considered to persist beyond a quarter or two, ratings and
or Rating Outlooks may be adjusted.

RATING DRIVERS AND SENSITIVITIES – VRs and IDRs:

BBT

BBT’s ratings were affirmed at ‘A+’ reflecting the
consistency of the company’s performance through the credit cycle.
Despite an operating footprint that was particularly hard hit, BBT has
remained profitable, a testament to the company’s strong

underwriting

 and conservative risk culture. Although BBT has a
concentration in mortgages, BBT has so far avoided a lot of the problems
ailing the industry, including very low mortgage repurchase costs and
not being subject to any regulatory-related action.

As BBT is one of the highest rated large regional banks, an upgrade
is currently viewed as unlikely over the near term; however, improved
profitability metrics, combined with the maintenance of an appropriate
level of capital could lead to an improved Outlook. Conversely, failure
to maintain earnings at current levels could result in negative ratings
pressure.

COF

COF’s ratings were affirmed at ‘A-‘, primarily
reflecting the company’s good credit quality, adequate capital
ratios, and Fitch’s expectation that COF will continue to build its
capital base in the wake of closing the two large acquisitions of
ING
Direct

 in the first quarter of 2012 (1Q’12), and the
HSBC

HSBC Humane Society of Bay County  
 domestic
credit card business in 2Q’12. The former acquisition added nearly
$80 billion of deposits to COF’s balance sheet which helped to fund
the $28.2 billion of credit card receivables acquired from HSBC. As a
result of these acquisitions, Fitch expects earnings over the near term
to remain noisy amid merger and restructuring costs, continued acquired
mortgage run-off, and various other costs/charges. Additionally, given
Fitch’s belief that COF’s credit quality, particularly in
credit cards, is nearing a potential
cyclical

Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements.
 low, Fitch would expect
the company’s
NCO

abbr.
noncommissioned officer


 noncommissioned officer

 n abbr (Mil) (= noncommissioned officer) →  
 rate to modestly increase over the medium term,
as COF’s newer receivables season and the company expands further
into the private label space, which generally has higher NCO rates. This
expectation is incorporated into current ratings.

Fitch notes that upwards rating momentum for COF is generally
limited given that COF is now simultaneously digesting two large
acquisitions. Potential negatives to COF’s ratings or Rating
Outlook could include the pursuit of another acquisition of size (a deal
greater than $10 billion) over the near-to-intermediate term, any large
capital distributions that negatively impact capital ratios, or an
unexpected and significant rise in troubled assets.

CMA

Fitch has affirmed CMA’s ratings, and maintained the Rating
Outlook at Negative. CMA’s financial performance continues to lag
regional peers given the prolonged low rate environment and weak
economy. Although CMA’s earnings performance improved
year-over-year, profitability measures fall more in-line with
‘A-‘ rated financial institutions. In Fitch’s opinion,
the prolonged rate environment will continue
to weigh down

 CMA’s
future results, and Fitch is not forecasting much
upside

 over the near
term.

The current rating is supported by CMA’s above-peer tangible
capital base, improved fundamentals such as asset quality performance
and funding profile. Capitalization levels are considered a rating
strength. Fitch believes CMA’s high level of tangible capital is
prudent given the relatively higher risk earning-asset base. The company
has always had a large concentration of C&I loans and it is the
highest by a wide margin when compared to large regional peers.

CMA’s ratings are at the high-end of its rating potential given
that financial performance is marginally in-line with similarly rated
financial institutions. Although not anticipated, ratings could also be
negatively affected if CMA were to reduce capital below peer averages
while maintaining similar loan mix within a relatively short-time frame.
Further, a
payout ratio

 (including repurchase activity) exceeding 100%
would also put pressure on current ratings.

FITB

FITB’s ratings were affirmed at ‘A-‘, and the Rating
Outlook remains Positive. The Positive Rating Outlook reflects
FITB’s stronger relative earnings profile, which is somewhat offset
by weaker asset quality ratios. Although FITB’s earnings profile
provides positive rating momentum, FITB’s asset quality represents
a
headwind
 or head wind  
n.
A wind blowing directly against the course of an aircraft or ship.


Noun

a wind blowing directly against the course of an aircraft or ship



 to an upgrade over the near term. Fitch does acknowledge that
despite higher than peer levels of NPAs, losses remain manageable,

hovering
  
intr.v. hov·ered, hov·er·ing, hov·ers
1. To remain floating, suspended, or fluttering in the air:

2.
 around peer averages over the past year.

A one-notch upgrade to FITB’s ratings could occur with a
reduction in NPA ratios, combined with the maintenance of above average
earnings, sound capital position, and strong liquidity profile. Although
a
downgrade

 is viewed as unlikely, a reversal in otherwise moderating
credit trends could apply negative ratings pressure.

HBAN

Fitch’s affirmation of HBAN’s
IDR

 is supported by the
company’s solid capital and liquidity position, good core
profitability, and stable asset quality performance. The Outlook has
been revised to Positive. Notably, HBAN has improved its risk profile
through various actions over the last few years such as disposing of
Franklin Credit, reducing transactional lending and improving its
capital and liquidity position. HBAN’s earnings measures, credit
performance and capital are now much more in-line with those of
‘A-‘ rated large regional peers.

Despite a difficult
operating environment

, HBAN has delivered solid
results with ROA hitting 1.19% in 3Q’12, solid PPNR/Avg Asset that
has averaged 1.65% over the last five quarter periods, and
NIM
  
tr. & intr.v. nimmed, nim·ming, nims Archaic
To steal; pilfer.


[Middle English nimen, to take, from Old English niman; see
 compression that has been more manageable versus peers. Fitch also
believes many of these trends are sustainable given the company’s
good loan growth in C&I portfolio, credit metrics returning to
normalized levels and strong non-interest bearing deposits (up 50% from
a year-ago) that has lowered its funding costs.

The Outlook is expected to be resolved in next 12-18 months. Ratings
could be upgraded one-notch if profitability and asset quality are
maintained at current levels. Further, capital should improve given
earnings retention and conservative capital management. Although
HBAN’s is not immune to economic pressures, Fitch would view
negatively should HBAN’s performance start to trend lower versus
its peers. Further, should the difficult operating environment impact
its stabilized credit performance, a revision to Stable would be
likely.

KEY

Fitch’s affirmation of KEY’s IDR at ‘A-‘ and
Stable Outlook is supported by the company’s strong capital
position, continued credit quality improvements, enhanced liquidity, and
reduced risk profile. Further, the company’s recent performance is
expected to remain sustainable. KEY’s capital position is the
highest of the peer group with a
TCE
 Environment A volatile chlorinated hydrocarbon that boils at 88ºC and is highly soluble–1000 ppm in water, with various industrial uses Toxicity Peripheral neuropathy, carcinogenic.
 of 10.44% at June 30, 2012. Ratings
also incorporate the company’s diversified revenue base evidenced
by noninterest income contributing roughly 47% of total revenues in
2Q’12. Fitch also notes that KEY has made significant improvements
to its liquidity profile with its growth of noninterest bearing deposits
and reduced its risk profile over the last few years.

Offsetting, the company’s earnings profile is considered weaker
than peers as it consistently reports financial returns that lag its
peers.
PPNR

 continues to be below large regional peers averages. NIM is
also modest, albeit improving. Incorporated in the affirmation is that
profitability trends are positive and should lead to KEY pulling to
peer-averages in the near term.

Current ratings are at the high-end of rating potential given that
financial performance is marginally in-line with similarly rated
financial institutions. Negative rating action could
ensue
  
intr.v. en·sued, en·su·ing, en·sues
1. To follow as a consequence or result. See Synonyms at follow.

2. To take place subsequently.
 should the
company take a more aggressive approach to capital management such as a
rapid decline of capital within a relatively short-time frame and/or a
total payout ratio exceeding 100%. Additionally, unexpected changes to
current business strategy or key executive management, a declining trend
from performance would be viewed negatively.

MTB

MTB’s ratings are affirmed at ‘A-‘ with a Stable
Outlook reflecting the company’s consistent sound financial and
credit performance during a difficult operating environment.
Additionally, Fitch views the company’s solid franchise, veteran
management team, and good revenue diversification as rating strengths.
Offsetting these positives, MTB manages with capital levels lower than
its peers. However, Fitch’s believes the company’s strong
equity generation, good asset quality, solid reserves when compared to
NCOs and moderate dividend payout afford MTB the ability to run with a
leaner capital position.

Nonetheless, Fitch recognizes that MTB faces some potential
challenges regarding Basel III. Particularly, MTB has a large portion of
trust preferred securities in its capital structure which will wind
down, a sizeable DTA and negative impacts from its Bayview investment
and private label
MBS

, and its large unfunded commitments book related
to commercial lending.

Positive rating momentum could ensue should MTB improve its capital
position relative to peer averages while maintaining strong earnings,
reserves and credit performance. Conversely, negative rating drivers
would be a more aggressive approach to capital management, and/or
announcing an acquisition in the near term given the sizeable
Hudson
City

 transaction. Additionally, unexpected changes to current business
strategy or key executive management would also be viewed
negatively.

PNC

PNC’s ratings were affirmed at ‘A+’ reflecting its
solid risk-adjusted earnings profile, strong liquidity profile, low
level of loan losses, and consistency of operating performance through
the recent financial crisis. This is somewhat offset by a larger
relative impact on capital ratios from Basel III, long tail risk to the
mortgage-related issues, and the realization of expected cost savings
and full integration of acquired businesses related to the March 2012
acquisition of
RBC
 red blood cell.


 or rbc
abbr.
red blood cell


n See red blood cell count.


RBC

red blood cells; red blood (cell) count (see blood count).
 Bank (USA). PNC’s earnings have included several
large or one-time items over the past few quarters. Fitch expects PNC to
report more
normalized earnings

 going forward, and at the higher end of
the peer group.

Fitch views an upgrade as a low likelihood given PNC’s already
high credit rating, the challenging economic environment, and weak
interest rate environment. However, there would be negative ratings
pressure if PNC were to report meaningful deterioration in asset
quality, coupled with weaker profitability metrics, or aggressive
capital management.

RF

RF’s ratings were affirmed at ‘BBB-‘ and the Rating
Outlook was revised to Positive reflecting the company’s continued
improvement in earnings performance, core capital position, and
maintenance of a strong liquidity profile. The company’s ratings
also reflect the strength of the company’s franchise, modest
holding company leverage, and low credit risk in the securities
portfolio. Nonetheless, RF ratings remain at the low end of the large
regional peer group mainly reflective of the company’s weaker
relative profitability and still elevated asset quality ratios.

Ratings could be positively impacted with the maintenance of core
earnings at peer levels, combined with a material reduction in problem
asset levels. Conversely, a sustained reversal of moderating credit
trends, combined with a large decrease in capital, would likely pressure
ratings; although this scenario is viewed as unlikely given RF’s
recent progress in addressing all of its many challenges.

STI

STI’s were affirmed at ‘BBB+’ reflecting the
company’s strong liquidity profile and sound capital position.
Although STI’s earnings performance has improved over the past
year, reported earnings are still relatively weak and below regional
bank peer averages. STI’s NPAs include a large percentage of
accruing TDRs; however, the credit risk appears mitigated given the very
high proportion that are current and have been current for several
years.

Sustained and improved profitability metrics that are in line with
large bank regional peers could result in positive rating momentum for
STI. Conversely, deteriorating asset quality trends, combined with a
lack of improvement in profitability metrics could pressure STI’s
current ratings.

USB

USB’s ratings were affirmed at ‘AA-‘, primarily
reflecting the company’s strong earnings generation over a
multi-year period which Fitch believes is due to USB’s low-cost
deposit base, efficient cost structure, stellar credit quality and high
proportion of non-interest income. This strong performance has allowed
USB to accrete capital at a significantly faster rate than several
peers, which has enabled USB to return capital to shareholders and
invest in future growth all while maintaining strong capital ratios.
Fitch expects this level of outperformance to continue, which is
reflected in USB’s current ratings, which are near the top of
Fitch’s bank rating universe globally.

Given this ratings positioning, Fitch notes that there is very
limited upside to USB’s current ratings. Risks to the ratings or
the Rating Outlook could result from the decision to expand the balance
sheet through a large acquisition (greater than $50 billion in assets)
or through a material change in corporate strategy. Though not
anticipated, examples of such a shift could include USB becoming more
internationally focused or more reliant on mortgage banking income.

UBC

The ratings of UBC were affirmed at ‘A’, which are
currently rated one notch higher than the parent bank, Bank of Tokyo
Mitsubishi (
BTMU

). Ratings are driven by intrinsic financial strength as
reflected in solid capitalization, improved asset quality, stable
funding with access to capital markets and consistent profitability.

Fitch does not envision any near-term upside in the ratings as
profitability metrics have lagged the large regional peer universe.
Ratings could be downgraded if the parent’s rating is downgraded
further or if current positive credit and earnings trends reverse
themselves. Should UBC enter into a material acquisition that adversely
impacts leverage or asset quality in the energy or real estate portfolio
deteriorates, ratings could be downgraded.

ZION

ZION’s ratings were affirmed at ‘BBB-‘ and the Rating
Outlook was revised to Positive, primarily reflecting the company’s
improving profitability, improving asset quality ratios, and on balance
modestly improved capital ratios. Fitch would also note that it views
ZION’s ability to repay its final installment of its TARP shares in
3Q’12 positively, which also supports the Outlook revision to
Positive.

Given this improvement across several fundamental yardsticks, Fitch
believes there is limited
downside

 in ZION’s ratings, unless the
company decided to pursue a large acquisition or the U.S.
economy–primarily in the western states– were to reverse course and
materially
worsen
  
tr. & intr.v. wors·ened, wors·en·ing, wors·ens
To make or become worse.


Verb

to make or become worse

worsening adjn
. Alternatively, should ZION’s continue it improve
its level of profitability and asset quality, all while enhancing
capital ratios, Fitch could envision an upgrade of the company’s
ratings over a near-to-medium term time horizon.

RATING DRIVERS AND SENSITIVITIES – Support Ratings and Support Floor
Ratings:

With the exception of WFC and UBC, all of the Large Regional Banks
in the peer group have Support Ratings of ‘5’ and Support
Floor Ratings of ‘NF’. WFC’s Support Rating of
‘1’ and Support Floor Rating of ‘A’ reflect its
systemic importance to the U.S. UBC’s Support Rating is
‘2’ reflects the high probability of support from its parent,
Bank of Tokyo Mitsubishi
UFJ

UFJ Upper Flex Joint
. Since this support is based on
institutional support, as opposed to sovereign support for WFC, there is
no Support Floor Rating assigned. Refer to the release on UBC dated July
23, 2012 for discussion of the UBC’s Support Rating.

In Fitch’s view, the remaining banks are not considered
systemically important and therefore, Fitch believes the probability of
support is unlikely. IDRs and VRs do not incorporate any government
support for any of the banks in the Large Regional Bank Peer Group.

RATING DRIVERS AND SENSITIVITIES –
Subordinated Debt

 and Other
Hybrid Securities:

Subordinated debt and hybrid capital instruments issued by the banks
are notched down from the issuers’ VRs in accordance with
Fitch’s assessment of each instrument’s respective
non-performance and relative loss severity risk profiles, which vary
considerably. The ratings of subordinated debt and hybrid securities are
sensitive to any change in the banks’ VRs or to changes in the
banks’ propensity to make
coupon payments

 that are permitted but
not compulsory under the instruments’ documentation.

RATING DRIVERS AND SENSITIVITIES – Holding Company:

All of the entities reviewed in the Large Regional Bank Group have a
bank holding company (BHCs) structure with the bank as the main
subsidiary. All subsidiaries are considered core to parent holding
company supporting equalized ratings between bank subsidiaries and bank
holding companies. IDR and VR are equalized with those of its operating
companies and banks reflecting its role as the bank holding company,
which is mandated in the U.S. to act as a source of strength for its
bank subsidiaries. Double leverage is right at or below 120% for all the
parent companies reviewed in this peer group.

RATING DRIVERS AND SENSITIVITIES – Subsidiary and Affiliated Company
Rating:

All of the entities reviewed in the Large Regional Bank Group factor
in a high probability of support from parent institutions to its
subsidiaries. This reflects the fact that performing parent banks have
very rarely allowed subsidiaries to default. It also considers the high
level of integration, brand, management, financial and reputational
incentives to avoid subsidiary defaults.

BBT

Fitch has affirmed the following ratings:

BB&T Corporation

–Long-term Issuer Default Rating (IDR) at ‘A+’; Outlook
Stable;

–Short-term IDR at ‘F1’;

–Viability at ‘a+’;

–Senior Debt at ‘A+’;

–Subordinated debt at ‘A’;

–Short-term debt at ‘F1’;

–Preferred stock at ‘BBB-‘;

–Support at ‘5’;

–Support Floor at ‘NF’.

Branch Banking & Trust Company

–Long-term IDR at ‘A+’; Outlook Stable;

–Short-term IDR at ‘F1’;

–Viability at ‘a+’;

–Subordinated debt at ‘A’;

–Short-term debt at ‘F1’;

–Long-term deposits at ‘AA-‘;

–Short-Term deposit at ‘F1+’;

–Support at ‘5’;

–Support Floor at ‘NF’.

BB&T Financial,
FSB

 

–Long-term IDR at ‘A+’; Outlook Stable;

–Short-term IDR at ‘F1’;

–Viability at ‘a+’;

–Support at ‘5’;

–Support Floor at ‘NF’.

COF

Fitch has affirmed the following ratings:

Capital One Financial Corp.

–Long-term IDR at ‘A-‘; Outlook Stable;

–Short-term IDR at ‘F1’;

–Viability rating at ‘a-‘;

–Senior shelf and
unsecured debt

 at ‘A-‘;

–Subordinated debt at ‘BBB+’;

–Preferred stock at ‘BB’;

–Support at ‘5’;

–Support floor at ‘NF’.

Capital One Bank (USA) National Association

–Long-term IDR at ‘A-‘; Outlook Stable;

–Short-term IDR at ‘F1’;

–Viability rating at ‘a-‘;

–Senior debt at ‘A-‘;

–Long-term deposits at ‘A’;

–Short-term deposits at ‘F1’;

–Subordinated debt at ‘BBB+’;

–Support at ‘5’;

–Support floor at ‘NF’.

Capital One National Association

–Long-term IDR at ‘A-‘; Outlook Stable;

–Short-term IDR at ‘F1’;

–Viability rating at ‘a-‘;

–Senior debt at ‘A-‘;

–Long-term deposits at ‘A’;

–Short-term deposits and short-term debt at ‘F1’;

–Support at ‘5’;

–Support floor at ‘NF’.

Chevy Chase Bank

, F.S.B.

–Long-term deposits at ‘A’.

Capital One Capital II, III, IV, V, and VI

–Trust Preferred at ‘BB+’.

Hibernia Corporation

–Subordinated debt at ‘BBB+’.

North Fork
 river, c.100 mi (160 km) long, rising in the Ozarks, S Mo., and flowing S, into N Ark., to the White River. Near its mouth is Norfolk Dam (completed 1944), which impounds Norfolk Lake and has a power plant.
 Bancorporation, Inc.

–Subordinated debt at ‘BBB+’.

North Fork Capital Trust II

–Trust preferred at ‘BB+’.

CMA

Fitch has affirmed the following ratings:

Comerica Incorporated

–Long-term IDR at ‘A’;Outlook Negative

–Senior debt at ‘A’;

–Subordinated debt at ‘A-‘;

–Viability at ‘a’;

–Short-term IDR at ‘F1’;

–Short-term debt at ‘F1’;

–Support at ‘5’;

–Support floor at ‘NF’.

Comerica Bank

–Long-term IDR at ‘A’; Outlook Negative;

–Subordinated debt at ‘A-‘;

–Long-term Deposits at ‘A+’;

–Viability at ‘a’;

–Short-term IDR at ‘F1’;

–Short-term Deposits at ‘F1’;

–Support at ‘5’;

–Support floor at ‘NF’.

FITB

Fitch has affirmed the following ratings:

Fifth Third Bancorp

–Long-term IDR at ‘A-‘; Outlook Positive;

–Viability Rating at ‘a-‘;

–Preferred stock at ‘BB’;

–Senior debt at ‘A-‘;

–Subordinated debt at ‘BBB+’;

–Short-term IDR at ‘F1’;

–Short-term debt at ‘F1’;

–Support at ‘5’;

–Support floor at ‘NF’.

Fifth Third Bank

–Long-term IDR at ‘A-‘; Outlook Positive;

–Viability Rating at ‘a-‘;

–Senior debt at ‘A-‘;

–Subordinated debt at ‘BBB+’;

–Long-term deposits at ‘A’;

–Short-term IDR at ‘F1’;

–Short-term deposits at ‘F1’;

–Support at ‘5’;

–Support floor at ‘NF’.

Fifth Third Capital Trust IV

–Preferred at ‘BB+’.

HBAN

Fitch has affirmed the following ratings:

Huntington Bancshares, Incorporated

–Long-term IDR at ‘BBB+’; Outlook Positive;

–Short-term IDR at ‘F2’;

–Viability rating at ‘bbb+’;

–Subordinated debt at ‘BBB’;

–Preferred stock at ‘BB-‘;

–Support at ‘5’;

–Support Floor at ‘NF’.

Huntington National Bank

–Long-term deposits at ‘A-‘;

–Long-term IDR at ‘BBB+’; Outlook Positive;

–Viability rating at ‘bbb+’;

–Senior unsecured at ‘BBB+’;

–Subordinated debt at ‘BBB’;

–Short-term IDR at ‘F2’;

–Short-term deposits at ‘F1’;

–Support at ‘5’;

–Support Floor at ‘NF’.

Huntington Capital I, II

–Preferred stock at ‘BB’.

Sky Financial Capital Trust I-IV

–Preferred stock at ‘BB’.

KEY

Fitch has affirmed the following ratings:

KeyCorp

–Long-term IDR at ‘A-‘; Outlook Stable;

–Short-term IDR at ‘F1’;

–Viability at ‘a-‘;

–Senior debt at ‘A-‘;

–Subordinated debt at ‘BBB+’;

–Preferred stock at ‘BB’;

–Short-term debt at ‘F1’;

–Support at ‘5’;

–Support Floor at ‘NF’.

KeyBank NA

–Long-term IDR at ‘A-‘; Outlook Stable;

–Short-term IDR at ‘F1’;

–Viability at ‘a-‘;

–Long-term deposits at ‘A’;

–Senior debt at ‘A-‘;

–Subordinated debt at ‘BBB+’;

–Short-term deposits at ‘F1’;

–Support at ‘5’;

–Support Floor at ‘NF’.

Key Corporate Capital, Inc.

–Long-term IDR at ‘A-‘; Outlook Stable;

–Short-term IDR at ‘F1’.

KeyCorp Capital I – III

–Preferred stock at ‘BB+’.

MTB

Fitch has affirmed the following ratings:

M&T Bank Corporation

–Long-term IDR at ‘A-‘; Outlook Stable;

–Short-term IDR at ‘F1’;

–Viability at ‘a-‘;

–Preferred stock at ‘BB’;

–Support at ‘5’

–Support floor ‘NF’.

Manufacturers and Traders Trust Co

–Long-term IDR at ‘A-‘; Outlook Stable;

–Short-term IDR at ‘F1’;

–Viability at ‘a-‘;

–Senior unsecured debt at ‘A-‘;

–Subordinated debt at ‘BBB+’

–Long-term deposits at ‘A’;

–Short-term deposits at ‘F1’;

–Support at ‘5’;

–Support floor ‘NF’.

Wilmington Trust

, N.A. (formerly M&T Bank, NA)

–Long-term IDR at ‘A-‘; Outlook Stable;

–Short-term IDR at ‘F1’;

–Viability at ‘a-‘;

–Long-term deposits at ‘A’;

–Short-term deposits at ‘F1’;

–Support at ‘5’;

–Support floor ‘NF’.

Wilmington Trust Corporation

–Long-term IDR at ‘A-‘; Outlook Stable;

–Subordinated debt at ‘BBB+’;

–Short-term IDR at ‘F1’;

–Viability at ‘a-‘;

–Support at ‘5’;

–Support floor at `NF’.

Wilmington Trust Company

–Long-term IDR at ‘A-‘; Outlook Stable

–Short-term IDR at ‘F1’;

–Viability at ‘a-‘;

–Support at ‘5’;

–Support floor at ‘NF’.

M&T Capital Trust I – IV

–Preferred stock at ‘BB+’.

Provident
  
adj.
1. Providing for future needs or events.

2. Frugal; economical.


[Middle English, from Latin pr
 Bankshares Corp.

–Preferred stock at ‘BB’.

Provident Bank of Maryland

–Subordinated debt at ‘BBB+’.

Provident (MD) Capital Trust I

–Preferred stock at ‘BB+’.

PNC

Fitch has affirmed the following ratings:

PNC Financial Services Group Inc.

–Long-term IDR at ‘A+’; Outlook Stable;

–Short-term IDR at ‘F1’;

–Viability at ‘a+’;

–Support at ‘5’;

–Support floor at ‘NF’;

–Preferred stock at ‘BBB-‘.

PNC Bank N.A.

–Long-term IDR ‘A+’; Outlook Stable;

–Long-term deposits at ‘AA-‘;

–Viability at ‘a+’;

–Subordinated at ‘A’;

–Short-term IDR at ‘F1’;

–Short-term deposits at ‘F1+’;

–Short-term debt at ‘F1’;

–Support at ‘5’;

–Support floor at ‘NF’.

PNC Funding Corp

–Long-term IDR at ‘A+’; Outlook Stable;

–Senior unsecured at ‘A+’;

–Subordinated at ‘A’;

–Short-term IDR at ‘F1’;

–Short-term debt at ‘F1’;

–Support at ‘5’;

–Support floor at `NF’.

Mercantile

 Bankshares Corporation

PNC Financial Corp.

–Subordinated at ‘A’.

PNC Capital Trust C

Fort Wayne
 city (1990 pop. 173,072), seat of Allen co., NE Ind., where the St. Joseph and St. Marys rivers join to form the Maumee River; inc. 1840. It is the second largest city in the state, a major railroad and shipping point, a wholesale and distribution hub,
 Capital Trust I

–Trust preferred at ‘BBB’.

National City Preferred Capital Trust I

–Preferred Stock ‘BBB-‘.

PNC Preferred Funding Trust I, II, III

–Hybrid capital instruments at ‘BBB’.

National City Credit Corporation

–Short-term IDR at ‘F1’;

–Support at ‘5’;

–Commercial paper at ‘F1’.

National City Corporation

–Senior unsecured at ‘A+’;

–Subordinated at ‘A’;

–Convertible preferred (trust preferred securities) at
‘BBB’;

–Preferred stock at ‘BBB-‘.

National City Bank (Cleveland)

–Long-term deposits at ‘AA-‘;

–Senior unsecured at ‘A+’;

–Subordinated at ‘A’;

–Short-term deposits at ‘F1+’.

National City Bank of Indiana

–Long-term deposits at ‘AA-‘;

–Subordinated at ‘A’.

National City Bank of Kentucky

The Provident Bank

–Long-term deposits at ‘AA-‘.

RF

Fitch has affirmed the following ratings:

Regions Financial Corporation

–Long-term IDR at ‘BBB-‘; Outlook Positive

–Senior debt at ‘BBB-‘;

–Short-term IDR at ‘F3’;

–Subordinated debt at ‘BB+’;

–Viability rating at ‘bbb-‘;

–Preferred stock at ‘B’;

–Support at ‘5’;

–Support floor at ‘NF’.

Regions Bank

–Long-term IDR at ‘BBB-‘; Outlook Positive;

–Long-term deposits at ‘BBB’;

–Short-term deposits at ‘F2’;

–Short-term IDR at ‘F3’;

–Senior debt at ‘BBB-‘;

–Subordinated debt at ‘BB+’;

–Viability rating at ‘bbb-‘;

–Support at ‘5’;

–Support floor at ‘NF’.

AmSouth Bank

–Subordinated debt at ‘BB+’.

Regions Financing Trust II, III

–Preferred stock at ‘B+’.

AmSouth Bancorporation

 

–Subordinated debt at ‘BB+’.

STI

Fitch has affirmed the following ratings:

SunTrust Banks, Inc.

–Long-term IDR at ‘BBB+’; Outlook Stable;

–Short-term IDR at ‘F2’;

–Viability Rating at ‘bbb+’;

–Preferred stock at ‘BB’;

–Senior debt at ‘BBB+’;

–Subordinated debt at ‘BBB’;

–Short-term debt at ‘F2’;

–Support at 5;

–Support Floor at ‘NF’.

SunTrust Bank

–Long-term IDR at ‘BBB+’; Outlook Stable;

–Short-term IDR at ‘F2’;

–Viability Rating at ‘bbb+’;

–Long-term deposits at ‘A-‘;

–Long-term deposits at ‘A-emr’;

–Senior notes at ‘BBB+emr’;

–Short-term deposits at ‘F2’;

–Subordinated debt at ‘BBB’;

–Short-term debt at ‘F2’;

–Support at ‘5’;

–Support Floor at ‘NF’.

SunTrust Capital I

SunTrust Capital III

National Commerce Capital Trust I

–Preferred stock at ‘BB’.

SunTrust Preferred Capital I

–Preferred stock at ‘BB-‘.

USB

Fitch has affirmed the following ratings:

U.S. Bancorp

–Long-term IDR at ‘AA-‘; Outlook Stable

–Senior Debt at ‘AA-‘;

–Subordinated debt at ‘A+’;

–Preferred stock at ‘BBB’;

–Short-term IDR at ‘F1+’;

–Commercial paper at ‘F1+’;

–Viability at ‘aa-‘

–Support at ‘5’;

–Support Floor at ‘NF’.

U.S. Bank, NA

–Long-term deposits at ‘AA’;

–Short-term deposits at ‘F1+’;

–Long-term IDR at ‘AA-‘; Outlook Stable;

–Senior debt at ‘AA-‘;

–Subordinated debt at ‘A+’;

–Short-term IDR at ‘F1+’;

–Short-term debt at ‘F1+’;

–Short-term deposits at ‘F1+’;

–Viability at ‘aa-‘;

–Support Rating at 5;

–Support Floor at NF.

U.S. Bank NA ND

–Long-term deposits at ‘AA’;

–Short-term deposits at ‘F1+’;

–Long-term IDR at ‘AA-‘; Outlook Stable;

–Senior debt at ‘AA-‘;

–Subordinated debt at ‘A+’;

–Short-term IDR at ‘F1+’;

–Short-term deposits at ‘F1+’;

–Viability at ‘aa-‘

–Support Rating at 5;

–Support Floor at NF.

Elavon
Financial Services

 Limited

–Long-term IDR at ‘AA-‘; Outlook Stable;

–Short-term IDR at ‘F1+’;

–Long-term deposits at ‘AA-‘;

–Short-term deposits at ‘F1+’;

–Support rating at ‘1’.

USB Capital IX

USB
Realty
 n. a short form of “real estate.” (See: real estate)


REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property.
 Corp.

–Preferred at ‘BBB+’.

UBC

Fitch has affirmed the following ratings:

UnionBanCal Corporation

–Long-term IDR at ‘A’; Outlook Stable;

–Short-term IDR at ‘F1’;

–Viability rating at ‘a’;

–Support rating at ‘2’;

–Senior unsecured debt at ‘A’;

–Subordinated debt at ‘A-‘.

Union Bank, N.A.

–Long-term IDR at ‘A’; Outlook Stable;

–Short-term IDR at ‘F1’;

–Viability rating at ‘a’;

–Support rating at ‘2’;

–Senior unsecured debt at ‘A’;

–Subordinated debt at ‘A-‘;

–Short-term debt at ‘F1;’

–Long-term deposits at ‘A+’;

–Short-term deposits at ‘F1’.

ZION

Fitch has affirmed the following ratings:

Zions Bancorporation

–Long-term Issuer Default Rating (IDR) at ‘BBB-‘; Outlook
Positive

–Short-term IDR at ‘F3’;

–Viability at ‘bbb-‘;

–Commercial paper at ‘F3’;

–Senior unsecured debt at ‘BBB-‘;

–Subordinated debt at ‘BB+’;

–Preferred stock to ‘B’;

–Support at ‘5’;

–Support Floor at ‘NF’.

Zions First National Bank

Amegy Bank, NA

California Bank & Trust

Nevada State Bank

National Bank of Arizona

Vectra Bank Colorado, NA

The Commerce Bank of Oregon

The Commerce Bank of Washington

–Long-term IDR at ‘BBB-‘; Outlook Positive

–Long-term deposits at ‘BBB’;

–Viability at ‘bbb-‘

–Short-term IDR at ‘F3’.

–Short-term deposits at ‘F2’;

–Support at ‘5’;

–Support Floor at ‘NF’.

Zions Institutional Capital Trust A

–Preferred stock at ‘B+’.

Additional information is available at www.fitchratings.com. The
ratings above were solicited by, or on behalf of, the issuer, and
therefore, Fitch has been compensated for the provision of the
ratings.

In addition to the source(s) of information identified in
Fitch’s Master Criteria, these actions were additionally informed
by information provided by the companies.

Applicable Criteria and Related Research:

–‘Risk Radar’ (Oct. 15, 2012);

–‘U.S. Banks: Rationalizing the Branch Network (Witness the
Incredible Shrinking Branch Network)’ (Sept. 17, 2012);

–‘U.S. Banks: Mortgage Representations and Warranties (Banks
Increase Reserves; Uncertainty Remains)’ (Aug. 20, 2012)

–‘Global Financial Institutions Rating Criteria’ (Aug.
15, 2012);

–‘Rating FI Subsidiaries and Holding Companies’ (Aug. 10,
2012);

–‘Treatment of Unrealized Losses in U.S. Bank Capital Rule
Proposal (Pro-Cyclical Capital Policy to Create Greater Capital
Volatility for Banks)’ (Aug. 7, 2012);

–‘Basel III: Return and Deleveraging Pressures’ (May 17,
2012);

–‘Rating Bank Regulatory Capital and Similar Securities’
(Dec. 15, 2011).

–‘U.S. Banks – Sovereign Support: When Does it End’ (Dec.
14, 2011).

Applicable Criteria and Related Research:

Risk Radar October 2012

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=691996

U.S. Banks: Rationalizing the Branch Network (Witness the Incredible
Shrinking Branch Network)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=688330

U.S. Banks: Mortgage Representations and Warranties (Banks Increase
Reserves; Uncertainty Remains)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=684038

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686181

Rating FI Subsidiaries and Holding Companies

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679209

Treatment of Unrealized Losses in U.S. Bank Capital Rule Proposal
(Pro-Cyclical Capital Policy to Create Greater Capital Volatility for
Banks)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=685638

Basel III: Return and Deleveraging Pressures

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=678273

Rating Bank Regulatory Capital and Similar Securities

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=656371

U.S. Banks — Sovereign Support: When Does it End — Amended

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=662250

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