Fitch Affirms Fulton Financial's IDR at 'A'; Outlook Stable.

NEW YORK -- Fitch has affirmed the long-term Issuer Default Rating (IDR) and short-term rating of Fulton Financial Corporation (FULT) at 'A' and 'F1', respectively. The Rating Outlook is Stable. A list of ratings and subsidiary ratings follows at the bottom of this press release.

Ratings of FULT are underpinned by its strong asset quality, solid earnings generation and sound capital position. Ratings remain constrained by FULT's relatively small yet growing franchise. Prudent credit extension policies and practices continue to result in low asset quality problems and minimal levels of NCOs. FULT's NPA ratio remains modest with strong coverage by loan loss reserves.

The recent acquisition of Columbia Bancorp deepens FULT's footprint in the demographically appealing Baltimore/Washington DC region. That said, the Columbia acquisition adds a considerable amount of goodwill, which pressures FULT's level of tangible equity. In the past, FULT's traditionally high level of tangible equity has been a differentiating rating factor. Fitch's Stable Rating Outlook factors in the expectation that the level of tangible equity will be rebuilt to historic norms through solid earnings generation and retention. Additionally, Fitch expects stable to enhanced earnings performance, combined with the maintenance of strong asset quality and a low risk profile.

Fitch has affirmed the following ratings:

Fulton Financial Corporation

-- Issuer Default Rating (IDR) 'A';

-- Short-term 'F1';

-- Subordinated Debt Rating 'A-';

-- Individual Rating 'A/B';

-- Support Rating '5'.

Fulton Capital Trust I

-- Preferred Stock 'A-'.

Fulton Bank

-- IDR 'A';

-- Long-term Deposits 'A+';

-- Short-term Deposits 'F1';

-- Short-term 'F1';

-- Individual 'A/B';

-- Support '5'.

Columbia Bank (The)

-- IDR 'A';

-- Long-term Deposits 'A+';

-- Short-term Deposits 'F1';

-- Short-term 'F1';

-- Individual 'A/B';

-- Support '5'.

Lafayette Ambassador Bank

-- IDR 'A';

-- Long-term Deposits 'A+';

-- Short-term Deposits 'F1';

-- Short-term 'F1';

-- Individual 'A/B';

-- Support '5'.

Lebanon Valley Farmers Bank

-- IDR 'A';

-- Long-term Deposits 'A+';

-- Short-term Deposits 'F1';

-- Short-term 'F1';

-- Individual 'A/B';

-- Support '5'.

Resource Bank

-- IDR 'A';

-- Long-term Deposits 'A+';

-- Short-term Deposits 'F1';

-- Short-term 'F1';

-- Individual 'A/B';

-- Support '5'.

The Bank

-- IDR 'A';

-- Long-term Deposits 'A+';

-- Short-term Deposits 'F1';

-- Short-term 'F1';

-- Individual 'A/B';

-- Support '5'.

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.