Fitch Affirms PNC Financial, Outlook Stable.

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 27, 2003

Fitch Ratings has affirmed ratings of PNC Financial Services Group (PNC) and its affiliates, and has removed all ratings from Rating Watch Negative. The Rating Outlook is Stable. Approximately $8 billion of debt is affected by this rating action.

One former subsidiary, PNC Advisors N.A., has been merged into PNC Bank N.A. Consequently Fitch is withdrawing the ratings on this subsidiary. A complete list of ratings follows at the end of this report.

Fitch placed ratings of PNC and its affiliates on Rating Watch Negative in July 2002, after PNC announced that bank and holding company regulators had put the company under formal enforcement actions. While the enforcement actions remain in effect, PNC has taken steps to meet the requirements contained in the enforcement documents. Specifically, PNC has taken steps to address the structure and quality of management, to improve corporate governance, and to improve risk management systems. Also, Fitch believes that there are no significant regulatory barriers that affect PNC's ability to conduct its current level of banking activities. Fitch believes that, since there is now less uncertainty about the condition of PNC's ongoing operations, the Rating Watch should be removed.

PNC remains involved in both commercial banking and asset management/processing businesses. While management has reduced the scope of its commercial banking businesses over the past few years, Fitch believes this process is nearing its end and does not expect radical changes in the business mix in the next year or so. PNC's remaining commercial businesses bear moderate risk levels, and management has adopted suitable risk controls, in Fitch's view. Growth in the asset management businesses has slowed due to the current weakness in the U.S. capital markets. Management is taking steps to refine its strategy and control costs in these businesses. Fitch believes these steps are reasonably and are likely to prove successful when the external environment recovers.

Capital levels have been strengthened over the last year, due to the suspension of stock buybacks and the company's good capital generation ability. Management will reinstate its share repurchase program during 2003, although the pace of such repurchases has not been decided. Fitch believes that current capital levels are sufficient for the company's risk profile. Fitch will monitor future changes in PNC's capital structure to make sure that capital remains appropriate for the company's business mix and level of risk.

Ratings Affirmed, Removed from Rating Watch Negative:

PNC Financial Services Group

--Long-term Senior 'A';

--Long-term Subordinated 'A-';

--Preferred Stock 'A-'

--Short-term 'F1';

--Individual 'B/C';

--Support '5';

--Rating Outlook Stable.

PNC Funding Corp.

--Long-term Senior 'A';

--Long-term Subordinated 'A-';

--Preferred Stock 'A-'

--Short-term 'F1';

--Individual 'B/C'

--Support '5';

--Rating Outlook Stable.

PNC Bank N.A.

--Long-term deposits 'A+';

--Long-term Senior 'A';

--Long-term Subordinated 'A-';

--Short-term Senior 'F1';

--Short-term Deposits 'F1';

--Individual 'B/C'

--Support '4';

--Rating Outlook Stable.

PNC Bank Delaware 

--Long-term deposits 'A+';

--Long-term Senior 'A';

--Long-term Subordinated 'A-';

--Short-term Senior 'F1';

--Short-term Deposits 'F1';

--Individual 'B/C'

--Support '4';

--Rating Outlook Stable.

PNC Financial Corp.

--Long-term Subordinated 'A-' ;

--Rating Outlook Stable.

PNC Capital Trust A

PNC Capital Trust B

PNC Capital Trust C

PNC Institutional Capital Trust A

PNC Institutional Capital Trust B

--Trust Preferred 'A-' ;

--Rating Outlook Stable.

Ratings Withdrawn:

PNC Advisors, National Association

--Long-term deposits 'A+';

--Long-term Senior 'A';

--Short-term Senior 'F1';

--Short-term Deposits 'F1';

--Individual 'B/C';

--Support '4'.