Correction: Fitch Keeps Doral Financial Corp & Subs on Watch Negative.

NEW YORK -- (This is an amended version of a press release issued yesterday and contains revised information throughout the release specifying that Doral's ratings remain on Rating Watch Negative, instead of being affirmed.)

Fitch Ratings-Chicago-August 23, 2005: Fitch's ratings on Doral Financial Corporation (Doral) and its subsidiaries remain on Rating Watch Negative. Doral's senior obligations are currently rated 'BB+' and the short-term rating is 'B' by Fitch. A complete list of ratings is provided at the end of this release.

Fitch is responding to Doral's announcement that its executive management team has undergone significant change. Through a combination of resignations and terminations made public last Friday, Doral has replaced its chief executive officer, chief financial officer, and treasurer, as well as its director emeritus. The changes in management were implemented in response to the findings of a report by Latham & Watkins LLP. Latham & Watkins was hired in early 2005 as an independent counsel for Doral's outside directors as part of the corrective action process to resolve the issues raised by the need of Doral to restate its financial statements.

The named replacements for the three management positions have the ability and knowledge to lead Doral through the restatement process and beyond, according to Fitch. The new treasurer and chief financial officer have been actively involved in the restatement process and the implementation of enhancements to Doral's risk management process. Fitch has had ongoing dialogue with these individuals as part of its own assessment of the progress made in the restatement process. Furthermore, Fitch believes that the departures of the former management team members were not necessitated by new findings that have not already been made public. Fitch expects that the timing, scope, and magnitude of the financial restatement process remain unchanged.

The changes in executive management, while not a surprise, do present near-term issues that could influence Doral's creditworthiness. The new management team must work to ensure staff members are not overly distracted by the abrupt departure of long-term members of Doral's management team. Uncertainty at the staff level could translate to loss of focus on some of the important work being conducted as part of the restatement as well as confusion among Doral's current and prospective customers that seek clarification from employees on the future direction of the company.

Fitch still anticipates resolving the Rating Watch status within 45 days. It is expected that the financial restatement process will be near completion within this time frame. Unexpected delays in the restatement process, expansion of the scope of transactions being reviewed, or an increase in the size of the expected restatement relative to previous indications, would be the most likely factors that would place additional pressure on the ratings. Fitch will also be seeking information on business flow at Doral in near-term to assess the influence of the management changes on Doral's financial profile.

The following ratings remain on Rating Watch Negative by Fitch:

Doral Financial Corporation

--Long-term issuer and senior unsecured at 'BB+';

--Short-term issuer and short-term notes at 'B';

--Individual at 'C/D';

--Preferred stock at 'BB-'.

Doral Bank

--Long-term deposit obligations at 'BBB';

--Long-term issuer at 'BBB-';

--Short-term deposit obligations at 'F3';

--Short-term issuer at 'F3'

--Individual at 'C'.

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.