Fitch Affirms National City Corporation & Subsidiaries; Outlook Revised to Negative.

NEW YORK -- Fitch Ratings has affirmed the long- and short-term Issuer Default Ratings (IDR) of National City Corporation (NCC) and its subsidiary bank National City Bank at 'AA-' and 'F1+', respectively. At the same time, Fitch has revised the Rating Outlooks to Negative from Stable. A complete list of all ratings is provided at the end of this release.

Earnings at NCC remain under pressure due to continued NIM compression as well as the ongoing volatility and weakness in mortgage banking. Although NCC is a diversified company, other aspects of the organization have not been able fill the earnings void from the mortgage business. While Fitch applauds previous steps to reduce risk levels of the franchise (as evidenced by its timely exit of its First Franklin sub-prime origination franchise), the company remains heavily exposed to the housing market.

Additionally, capital levels, particularly regulatory capital ratios, have dropped below similarly rated peers. This may potentially weaken financial flexibility as the credit cycle may become more challenging. NCC also has expanded its efforts to build its retail branch banking business through acquisitions in Florida and the Chicago area. However, Fitch recognizes that both these markets are highly competitive and the platform that NCC has assembled will require additional investment.

To resolve the Rating Outlook, Fitch will further review the company's capital planning process as well as ongoing earnings results and expectations.

Fitch has affirmed the following ratings:

National City Corporation

--Long-term IDR 'AA-';

--Senior debt 'AA-';

--Subordinated debt 'A+';

--Preferred stock 'A+';

--Short-term IDR 'F1+';

--Individual 'A/B';

--Support '5';

--Support Floor 'NF';

--Rating Outlook revised to Negative from Stable.

National City Bank (Cleveland)

--Long-term IDR 'AA-';

--Long-term deposits 'AA'

--Senior debt 'AA-';

--Subordinated debt 'A+';

--Short-term deposits 'F1+'

--Short-term IDR 'F1+';

--Individual 'A/B';

--Support '4';

--Support Floor 'B';

--Rating Outlook revised to Negative from Stable.

National City Credit Corporation

--Short-term 'F1+'

--Commercial paper 'F1+'

--Support '5'.

National City Capital Trust II

National City Capital Trust III

Fort Wayne Capital Trust I

PFGI Capital Corporation

--Preferred stock 'A+'.

Fitch has affirmed the debt issues of the following inactive entities:

National City Bank of Indiana

National City Bank of Kentucky

--Long-term deposits 'AA'

--Senior debt 'AA-'

--Subordinated debt 'A+';

--Short-term deposits 'F1+'.

National City Bank of Pennsylvania

--Long-term deposits 'AA'

--Subordinated debt 'A+';

--Short-term deposits 'F1+'.

National City Bank (Columbus)

--Subordinated debt 'A+'.

The Provident Bank

--Long-term deposits 'AA'.

Provident Financial Group, Inc.

--Senior debt 'AA-'.

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.