Comerica Ratings Affd, Imperial Bancorp On Watch Positive.

Business Editors

CHICAGO--(BUSINESS WIRE)--Nov. 1, 2000

Fitch, the international rating agency, affirms its 'A+' long-term senior rating on Comerica, Inc. following its proposed acquisition of Imperial Bancorp (long-term senior 'BBB-'), whose ratings are simultaneously placed on Rating Watch Positive pending its combination with higher rated Comerica. See below for complete ratings list.

The transaction will be financed through an exchange of stock under the pooling-of-interests accounting treatment that will preserve balance sheet integrity. The merger is a good strategic fit, largely combining two banking franchises with a commercial orientation. While both Comerica and Imperial have not participated in the recent consolidation wave, they have each independently pursued similar strategies of concentrating in commercial lending across various product and geographic sectors.

In this regard, Imperial's niche businesses, including title and escrow, entertainment, and emerging growth and venture- backed companies, complement Comerica's strength in core middle-market lending. Comerica, which has a well-earned credit culture reputation, should provide discipline for Imperial's lending process, which at times resulted in variability in asset quality performance. While we believe Imperial's loan portfolios are of generally higher risk than those of Comerica's, on a consolidated basis we consider such additional risk minimal and are comforted by Comerica's credit origination and administration process.

Following an estimated $145 million restructuring charge, some administrative and operational cost synergies exist as the two California banks are combined. While no additional revenue growth is forecast, Imperial holds warrants in a large number of emerging growth and venture capital-backed businesses, which may provide some revenue potential in future periods. Still, the strongest attribute of Imperial remains its superior funding profile, rooted in a rich, low cost deposit base. Comerica, which has relied heavily on wholesale funding sources in recent years to fund loan growth, will benefit materially from access to these deposits. While we are affirming our ratings on Comerica, following the merger we will review our bank level short- term rating of 'F1' for a possible upgrade, reflecting the more balanced nature of Comerica's resultant funding base.

Fitch is an international rating agency that provides global capital market investors with the highest quality ratings and research. Dual headquartered in New York and London with a major office in Chicago, Fitch rates entities in 75 countries and has some 1,100 employees in over 40 local offices worldwide. The agency, which is a combination of Fitch IBCA and Duff & Phelps Credit Rating Co., provides ratings for Financial Institutions, Banks, Corporations, Structured Finance, Insurance, Sovereigns and Public Finance markets worldwide.

Ratings Affirmed:

Comerica, Inc.

--Senior long-term 'A+',

--Senior short-term 'F1',

--Individual rating 'B',

--Support '5'.

Comerica Bank (Michigan):

--Uninsured deposits long-term 'AA-',

--Uninsured deposits short-term 'F1',

--Senior long-term 'A+',

--Senior short-term 'F1',

--Individual rating 'B',

--Support '4'.

Comerica Bank California:

--Uninsured deposits long-term 'AA-',

--Uninsured deposits short-term 'F1',

--Senior long-term 'A+',

--Senior short-term 'F1',

--Individual rating 'B',

--Support '4'.


Ratings Placed on Rating Watch Positive

Imperial Bancorp:

--Senior long-term 'BBB-',

--Individual rating 'B/C',

--Support '5'.

Imperial Bank:

--Uninsured deposits long-term 'BBB',

--Uninsured deposits short-term 'F2',

--Senior long-term 'BBB-',

--Senior short-term 'F2',

--Subordinated debt 'BB+',

--Individual rating 'B/C',

--Support '5'.

Imperial Capital Trust 1:

--Preferred stock 'BB+'.