Correction: Fitch Affirms Bank of Montreal at AA-; Outlook Stable.

NEW YORK -- (This is an amended version of a press release issued earlier today that corrects the long-term deposit rating for Harris National Association.)

Fitch Ratings has affirmed all ratings for the Bank of Montreal (BMO) and its principal banking subsidiaries, including the long-term Issuer Default Rating of 'AA-'. A complete list of ratings follows at the end of this release.

Fitch's rating assessment of BMO reflects the company's diversified franchise and solid market position in Canada and its established U.S. presence anchored by Harris National Association (Harris N.A.). BMO's financial performance remains sound with satisfactory earnings generation, good asset quality, and solid capital. While BMO's profitability is slightly less than its Canadian peers, earnings remain sound and consistent. Consistent with industry trends, the challenging yield curve and competition have pressured the net interest margin. However, fee income streams have grown, primarily in card fees, mutual funds, insurance, underwriting and advisory, and trading. At Harris N.A., margin compression and reinvestment for organic growth through de novo branching and bank acquisitions resulted in just a 0.52% return on assets for the nine months ending Sept. 30, 2006. BMO has increasingly focused on improving efficiency. In January 2007, the company announced a corporate-wide restructuring that will entail a headcount reduction of 1,000 positions, primarily non-customer facing. BMO's earnings performance will easily absorb the associated charge of $88 million after tax expected to be taken in the first quarter of 2007.

As with other key risk areas, BMO's management of credit risk is robust. Fitch notes that BMO's low credit costs remain consistently lower than other large Canadian banks. Net credit losses were just 15 basis points (bps) of loans (excluding acceptances and securities purchased under resale agreements) in 2006. Gross impaired loans (GILs) continued to decline and are very manageable at 43 bps of loans.

Capital levels have strengthened somewhat and are in line with domestic peers and BMO's overall risk profile. Despite growth aspirations for Harris N.A. in particular, BMO's targeted dividend payout rate is relatively high at 45%-55% of earnings. BMO's funding profile and liquidity remain good.

Fitch has affirmed the following ratings with a Stable Outlook:

Bank of Montreal

--Long-term Issuer Default Rating 'AA-';

--Short-term rating 'F1+';

--Senior unsecured debt 'AA-';

--Subordinated debt 'A+';

--Individual 'B';

--Support '1'.

BMO Capital Trust A-E 

--Preferred stock 'A+'.

Harris Bankcorp, Inc.

--Long-term Issuer Default Rating 'AA-';

--Short-term rating 'F1+';

--Individual 'B';

--Support '1'.

Harris National Association

--Long-term Issuer Default Rating 'AA-';

--Long-term deposits 'AA';

--Short-term rating 'F1+';

--Short-term deposits 'F1+';

--Individual 'B';

--Support '1'.

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. The issuer did not participate in the rating process other than through the medium of its public disclosure.