Correction - Fitch Downgrades Citizens Republic Bancorp IDR to 'BBB-'; Outlook Stable.

CHICAGO -- (This is a correction for a previous message. It further clarifies the bank named in the 2d paragraph.)

Fitch Ratings has downgraded the long-term and short-term Issuer Default Ratings (IDRs) for Citizens Republic Bancorp, Inc. (CRBC) and its principle subsidiaries to 'BBB-' from 'BBB' and to 'F3' from 'F2', respectively. In addition, Fitch has downgraded the Individual Rating to 'C' from 'B/C'. Following today's rating actions, CRBC's Rating Outlook is Stable. A complete list of ratings follows at the end of this release.

Fitch's downgrade of CRBC's ratings reflects the company's degree of asset quality deterioration evidenced by the sharp rise and sheer volume of nonperforming assets (NPAs) and loan losses. At Dec. 31, 2007, NPAs represented a hefty 2.58% of loans and foreclosed real estate. Credit problems are generally concentrated in the land development, land hold, and construction portions of the commercial real estate loan portfolio, and largely represent loans originated by Lansing, MI-based Republic Bancorp Inc., which CRBC acquired on Dec. 29, 2006. CRBC has noted declining real estate collateral values in its Michigan and Ohio markets. Net charge-offs (NCOs) in the final quarter of 2007 were $19 million or 0.84% (annualized) of average loans. Management has materially reduced the exposure to the aforementioned troubled loan sectors over the last year. Nevertheless, a substantial portion of the still performing portion of the loan portfolio is already on the Watch list and further migration to nonperforming remains likely. While CRBC has not reported significant credit quality deterioration in its consumer loan book to date, this may also develop given any extended economic downturn.

Fitch's assignment of a Stable Rating Outlook at this time heavily factors the company's significant balance sheet cushion in the form of loan loss reserves and capital. At year-end, the loan loss reserve represented 1.71% of total loans. Fitch notes the management team's good track record in managing elevated levels of problem assets and maintaining strong credit risk management practices, including proactively marking down problem credits when updated market values warrant. Despite Fitch's view that economic conditions and prospects in Michigan and Ohio will continue to challenge CRBC in remediating problem credits, these key rating factors support a Stable Outlook at CRBC's new rating levels.

Fitch has downgraded the following ratings:

Citizens Republic Bancorp, Inc.

--Long-term Issuer Default Rating (IDR) to 'BBB-' from 'BBB'; Outlook Stable;

--Subordinated debt to 'BB+' from 'BBB-';

--Short-term IDR to 'F3' from 'F2';

--Individual to 'C' from 'B/C'.

Citizens Bank

F&M Bank-Iowa

--Long-term deposits to 'BBB' from 'BBB+'; Outlook Stable;

--Long-term IDR to 'BBB-' from 'BBB';

--Short-term IDR to 'F3' from 'F2';

--Individual to 'C' from 'B/C'.

CB Wealth Management, National Association

--Long-term IDR to 'BBB-' from 'BBB'; Outlook Stable;

--Short-term IDR to 'F3' from 'F2';

--Individual to 'C' from 'B/C'.

Citizens Funding Trust I

--Preferred stock to 'BB+' from 'BBB-'.

Fitch has affirmed the following ratings:

Citizens Republic Bancorp, Inc.

Citizens Bank

F&M Bank-Iowa

CB Wealth Management, National Association

--Support at '5';

--Support floor at 'NF'.

Citizens Bank

F&M Bank-Iowa

--Short-term deposits at 'F2'.

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.