Fitch: Minimal Relief from Asset Quality, Earnings Pressure Prompts National
  City Downgrade

Business Wire

NEW YORK -- October 03, 2008

National City Corporation (NCC) has been battling asset quality issues in its
mortgage and home equity portfolios for over a year. Fitch notes that during
that time the company raised $7.0 billion in new equity capital and improved
its liquidity profile and processes. The near future is unlikely to offer the
company any relief and may very well result in additional asset quality
problems as the economy weakens, says Fitch Ratings. With market pressures
making access to new forms of funding quite difficult, NCC will need continued
focus on maintaining its strong liquidity. The recent passage of the Emergency
Economic Stabilization Act could potentially provide the company with some
relief.

Fitch has downgraded NCC and its subsidiary, National City Bank's (NCB's),
long and short-term Issuer Default Ratings (IDR). NCC long-term IDR has been
lowered to 'BBB+' from 'A' while NCB's long-term IDR has been lowered
one-notch to 'A-' from 'A'. The bank and the holding company's Individual
rating has been lowered to 'C' from 'B' and the short-term IDR was lowered to
'F2' from 'F1'. Additionally, Fitch has placed all ratings on Negative Rating
Watch. A complete list of all ratings is provided at the end of this release.

NCC's liquidating portfolio, comprised largely of mortgage and home equity
loans, remains its most problematic and represents approximately 18% of total
loans. While ultimately Fitch views this portfolio as manageable if worked out
over a period of years, the portfolio has caused a sizeable uptick in NPAs and
NCOs. The now more evident slow-down in the U.S. economy may add to problem
assets and would clearly hinder the company's return to profitability and
earnings are expected to remain pressured. The company has a relatively higher
level of problem assets for a company in the 'A-' rating category. The
Negative Watch reflects concern that further deterioration in the overall
economy could result in additional asset quality problems.

Fitch notes that the parent has minimal near term maturities and several years
worth of liquidity to meet all obligations without consideration of any
potential dividends from its banks. Since earlier this year, the company began
stockpiling both liquidity and capital, which now provides the firm with a
meaningful cushion to withstand further write-downs of problem assets, even to
liquidation values.

Fitch has downgraded the following ratings:

National City Corporation

--Long-term IDR downgraded to 'BBB+' from 'A';

--Senior debt downgraded to 'BBB+' from 'A';

--Subordinated debt downgraded to 'BBB' from 'A-';

-- Preferred stock downgraded to 'BBB-' from 'A-';

--Short-term IDR downgraded to 'F2' from 'F1';

--Individual to downgraded 'C' from 'B';

--Support remains at '5';

--Support Floor remains at 'NF';

--Rating Watch Negative.

National City Bank (Cleveland)

--Long-term IDR downgraded to 'A-' from 'A';

--Long-term deposits downgraded to 'A' from 'A+';

--Senior Debt downgraded to 'A-' from 'A';

--Subordinated debt downgraded to 'BBB+' from 'A-';

--Short-term deposits 'F1'

--Short-term IDR downgraded to 'F2' from 'F1';

--Individual downgraded to 'C' from 'B';

--Support remains at '4';

--Support floor remains at 'B'.

--Rating Watch Negative.

National City Credit Corporation

--Short-term downgraded to 'F2' from 'F1'

--Commercial paper downgraded to 'F2' from 'F1'

--Support remains at '5';

National City Capital Trust II

National City Capital Trust III

National City Capital Trust IV

National City Preferred Capital Trust I

Fort Wayne Capital Trust I

PFGI Capital Corporation

--Subordinated preferred stock downgraded to 'BBB' from 'A-'.

Fitch has downgraded the debt issues of the following inactive entities:

National City Bank of Indiana

National City Bank of Kentucky

--Long-term deposits downgraded to 'A' from 'A+';

--Senior Debt downgraded to 'A-' from 'A';

--Subordinated debt downgraded to 'BBB+' from 'A-'.

National City Bank of Pennsylvania

--Long-term deposits downgraded to 'A' from 'A+';

--Subordinated debt downgraded to 'BBB+' from 'A-'.

National City Bank (Columbus)

--Subordinated Debt downgraded to 'BBB+' from 'A-'.

The Provident Bank

--Long-term deposits downgraded to 'A' from 'A+'.

Fitch's rating definitions and the terms of use of such ratings are available
on the agency's public site, www.fitchratings.com. Published ratings, criteria
and methodologies are available from this site, at all times. Fitch's code of
conduct, confidentiality, conflicts of interest, affiliate firewall,
compliance and other relevant policies and procedures are also available from
the 'Code of Conduct' section of this site.

Contact:

Fitch Ratings, New York
John Mackerey, +1-212-908-0366
Doriana Gamboa, +1-212-908-0865
Media Relations:
Tyrene Frederick-Mack, +1-212-908-0540