Fitch Assigns 'BBB-' To CFBX's Capital Trust IV.

Business Editors

CHICAGO--(BUSINESS WIRE)--Feb. 24, 2003

Fitch Ratings has assigned a 'BBB-' rating and a Stable Rating Outlook to the $60 million Community First Bankshares, Inc. (CFBX) issuance through Capital Trust IV, (CFB Capital IV). All other ratings of CFBX and its subsidiaries are affirmed with a Stable Rating Outlook.

CFBX's ratings reflect the company's geographic diversification, financial and credit performance, and long-term profitability. In Fitch's view, these factors, along with strategic restructuring have enhanced the profile of the organization and strengthened its business model. These positive variables are balanced by the company's lower level of capitalization and high balance of leverage at the parent company.

The company intends to use the net proceeds from the issuance of CFB Capital IV's capital securities to redeem the $60 million outstanding under CFB Capital II. As a result, leverage and capital levels are not expected to be impacted following the completion of this transaction.

Ratings Assigned:

CFB Capital Trust IV

-- Trust Preferred 'BBB-'.

-- Long-Term Outlook Stable.

Ratings Affirmed:

Community First Bankshares, Inc.

-- Long-Term senior 'BBB';

-- Subordinate debt 'BBB-';

-- Short-Term senior 'F2';

-- Individual 'C';

-- Support '5'.

-- Long-Term Outlook Stable.

Community First National Bank

-- Long-Term deposits 'BBB+';

-- Long-Term senior 'BBB';

-- Short-term senior 'F2';

-- Short-term deposits 'F2';

-- Individual 'B/C';

-- Support '5'.

-- Long-term Outlook Stable.

CFB Capital II and III

-- Trust preferred 'BBB-'.

-- Long-Term Outlook Stable