Fitch Affirms Investors Financial Services Corporation.

CHICAGO -- Fitch Ratings has affirmed all ratings of Investors Financial Services Corporation (IFIN) and its subsidiaries following IFIN's projection of slower earnings growth and institution of a share repurchase program. The Rating Outlook remains Stable. A complete list of ratings follows at the end of this release.

Fitch believes that neither the projections of slower earnings growth nor the size of the share repurchase program pose a threat to IFIN's ratings. Accordingly, Fitch is affirming all ratings with a Stable Outlook.

While IFIN has historically posted strong earnings growth due to its expanding book of business and positive funds flows, there are several sources of earnings pressure over the intermediate term. First, unfavorable interest rates are likely to restrain spread income. Also, contract renewals may result in margin pressures going forward. Finally, weak equity markets could impact fee growth. Despite these pressures, Fitch expects future earnings to remain well within expectations for a company at this rating level.

Similarly, while the share repurchase program may cause a moderate and temporary decline in tangible capital levels, Fitch anticipates that management will be able to maintain capital appropriate for this rating category over the intermediate term. Fitch's assessment is supported by IFIN's strong record of earnings retention.

IFIN's main operating subsidiary, Investors Bank and Trust Company, is an asset custodial firm specializing in servicing mutual funds and other complex pooled funds. IFIN's ratings are supported by its solid market niche, strong liquidity, and well controlled operational risk levels.

The following ratings are affirmed with a Stable Rating Outlook by Fitch:

Investors Financial Services Corporation

-- Long-term senior 'A';

-- Short-term 'F1';

-- Individual 'B';

-- Support '5'.

Investors Bank & Trust Company

-- Long-term deposits 'A';

-- Long-term senior 'A';

-- Short-term deposits 'F1';

-- Other short-term obligations 'F1';

-- Individual 'B';

-- Support '5'.

Investors Capital Trust I

-- Trust preferred securities 'A-'.

Fitch's rating definitions are available on the agency's public web site, www.fitchratings.com. Published ratings, criteria and methodologies and relevant policies and procedures are also available from this site, at all times. This document will remain on the public site for seven days.