Fitch: Rating Outlook On Trinidadian Banks Revised To Stable.

Business Editors

NEW YORK--(BUSINESS WIRE)--Nov. 21, 2002

Fitch Ratings has revised the Rating Outlook for Republic Bank Limited (Republic), RBTT Financial Holdings Limited (RBTT), and RBTT Bank Limited (RBTTB) to Stable from Negative.

In February 2002, Fitch had assigned a Negative Rating Outlook to the long-term foreign currency rating of Republic, RBTT and RBTTB due to a political deadlock that created some uncertainty in the local business environment and resulted in a legislative paralysis and some policy uncertainty. The recent general election returned a clear governing majority, resolving the prolonged political impasse started in December 2001. The recent political resolution is likely to further boost prospects for foreign and domestic investment, including an estimated USD3 billion in new energy projects, enhancing the likelihood for medium-term real growth of 5%-6%.

The emergence of a governing majority and the adoption of the budget are likely to benefit the banking sector, largely dominated by Republic and RBTTB. Unpredictability on the political front had contributed to weak loan demand from businesses and individuals, leaving commercial banks with high levels of liquidity. Renewed optimism stemming from the end of the political stalemate, low interest rates, and a number of measures in the approved budget (such as lower individual and corporation taxation, the payment of TTD600 million in arrears to public servants, increased wage minimum) could provide some impetus to loan demand. Equally important are the prospects of adoption of new legislation to further strengthen and integrate the overall financial supervisory framework. Notwithstanding these positive developments in T&T, Fitch will continue to closely monitor the impact of the global economy, particularly the slowdown in neighboring Caribbean economies, on Republic's and RBTT's financial profiles in light of their expanded regional franchises.

Ratings:

Republic Bank Limited

-- Long-term foreign currency rating 'BBB-';

-- Long-term rating Outlook to 'Stable' from 'Negative'

-- Short-term foreign currency rating 'F3';

-- Individual rating 'C';

-- Support rating '2'.

RBTT Financial Holdings Limited

-- Long-term foreign currency rating 'BB+';

-- Long-term rating Outlook to 'Stable' from 'Negative'

-- Short-term foreign currency rating 'B';

-- Individual rating 'C/D';

-- Support rating '5'.

RBTT Bank Limited

-- Long-term foreign currency rating 'BBB-';

-- Long-term rating Outlook to 'Stable' from 'Negative'

-- Short-term foreign currency rating 'F3';

-- Individual rating 'C';

-- Support rating '2';