Fitch Discusses Outlook Revision on Bank of America.

CHICAGO -- Earlier today, Fitch Ratings revised the Rating Outlook of Bank of America Corporation (BAC) and its affiliates to Negative from Stable, while affirming all Issuer Debt Ratings (IDRs) and other outstanding credit ratings. Key ratings are shown directly below with a complete list of all ratings following at the end of this release.

Fitch's rating action reflects the fact that BAC's earnings have a significant level of sensitivity to trends in the deteriorating residential mortgage market. Management recently announced that it expects to substantially increase loan loss provisions in fourth quarter-2007 (4Q'07) to offset deterioration in its home equity loan portfolio. Management also announced that negative mark-to-market valuations in its holdings of collateralized debt obligations (CDOs), particularly those secured by subprime residential mortgages, will be larger than previously anticipated. As a result of these negative developments, management stated that earnings in 4Q'07 will decline substantially from previous levels, although they currently expect to remain profitable.

Fitch believes that the negative conditions in the credit markets will likely persist beyond 4Q'07 and could put significant pressure on earnings into 2008. Such pressure would likely be reflected in a combination of further CDO markdowns, the need for additional provisions in home equity or other consumer loans, and/or mark to market losses in other trading and securitization exposures. BAC also faces other challenges. Tier 1 capital will likely decline well below management's 8% target at year-end (YE) 2007, due in part to the recent acquisition of LaSalle Bank Corporation and in part to depressed earnings in 3Q'07 and 4Q'07. Management will also need to integrate LaSalle's higher-risk commercial loan book at a time when the commercial credit cycle is weakening. Management is also reviewing its activities in the capital markets area and may decide to exit several businesses. While this action will likely improve BAC's risk-reward profile in the long-term, it could have an additional earnings impact in the short term.

BAC retains a number of strengths that partially mitigate these concerns. The franchise is extremely broad and the loan portfolio is well diversified. The company has access to a wide variety of funding sources as well as additional sources of capital. Also, BAC is an experienced acquirer and has integrated difficult acquisitions in the past.

Fitch has revised the Rating Outlook to Negative and affirmed the following ratings:

Bank of America Corporation

-- Long-term IDR (IDR)'AA';

-- Long-term senior debt 'AA';

-- Long-term subordinated debt 'AA-';

-- Preferred stock 'AA-';

-- Short-term IDR 'F1+';

-- Short-term senior debt 'F1+';

-- Individual 'A/B';

-- Support '5';

-- Support Floor `NF'.

Bank of America N.A.

-- Long-term deposits 'AA+';

-- Long-term IDR 'AA';

-- Long-term senior debt 'AA';

-- Long-term subordinated debt 'AA-'

-- Short-term IDR 'F1+';

-- Short-term senior debt 'F1+';

-- Short-term deposits 'F1+';

-- Individual 'A/B';

-- Support '1';

-- Support Floor `A-'.

FIA Card Services N.A.

-- Long-term deposits 'AA+';

-- Long-term IDR 'AA';

-- Long-term senior debt 'AA';

-- Long-term subordinated debt 'AA-'

-- Short-term IDR 'F1+';

-- Short-term deposits 'F1+';

-- Individual 'A/B';

-- Support '1';

-- Support Floor `A-'.

MBNA Europe Bank Ltd.

-- Long-term IDR 'AA';

-- Long-term senior debt 'AA'

-- Subordinated debt 'AA-'

-- Short-term IDR'F1+';

-- Individual 'A/B';

-- Support '1'.

MBNA Canada Bank

-- Long-term IDR 'AA';

-- Long-term senior debt 'AA';

-- Subordinated debt 'AA-';

-- Short-term IDR 'F1+'.

United States Trust Company N.A.

-- Long-term deposits 'AA+';

-- Long-term IDR 'AA';

-- Long-term senior debt 'AA';

-- Short-term IDR 'F1+';

-- Short-term deposits 'F1+';

-- Individual 'A/B';

-- Support '1'.

-- Support Floor `A-'.

Banc of America Securities Limited

-- Long-term IDR 'AA';

-- Short-term IDR 'F1+'.

Banc of America Securities LLC 

-- Long-term IDR 'AA';

-- Short-term IDR 'F1+'

B of A Issuance B.V.

-- Long-term IDR 'AA';

-- Long-term senior debt 'AA';

-- Long-term subordinated debt 'AA-';

-- Support '1'.

Bank of America Georgia, N.A.

-- Long-term IDR 'AA';

-- Short-term IDR 'F1+';

-- Individual 'A/B';

-- Support '1';

-- Support Floor `A-'.

Bank of America Oregon, National Association

-- Long-term IDR 'AA';

-- Short-term IDR 'F1+';

-- Individual 'A/B';

-- Support '1';

-- Support Floor `A-'.

Bank of America Rhode Island, National Association

-- Long-term IDR 'AA';

-- Short-term IDR 'F1+';

-- Individual 'A/B';

-- Support '1';

-- Support Floor `A-'.

Bank of America California, National Association

-- Long-term IDR 'AA';

-- Short-term IDR 'F1+';

-- Individual 'A/B';

-- Support '1';

-- Support Floor `A-'.

LaSalle Bank N.A.

LaSalle Bank Midwest N.A.

-- Long-term Deposits 'AA+';

-- Long-term IDR `AA';

-- Individual 'A/B';

-- Short-term Deposits, 'F1+';

-- Short-term IDR, 'F1+';

-- Support, '1';

-- Support Floor `A-'.

LaSalle Bank Corporation.

-- Long-term IDR `AA';

-- Individual 'A/B';

-- Short-term IDR 'F1+';

-- Short-term debt `F1+';

-- Support '5';

-- Support Floor `NF'.

ABN Amro North America Holding Capital Funding LLC I - XIX

-- Preferred stock 'AA-'.

ABN Amro North America Capital Funding Trust I - II

-- Trust Preferred Stock 'AA-'.

BAC Capital Trust I - VIII

-- Trust preferred securities 'AA-'.

BAC Capital Trust X - XV

-- Trust preferred securities 'AA-'.

BankAmerica Capital II, III

-- Trust preferred securities 'AA-'.

BankAmerica Institutional Capital A, B

-- Trust preferred securities 'AA-'.

BankBoston Capital Trust I-IV

-- Trust preferred securities 'AA-'.

Barnett Capital Trust I, II, III

-- Trust preferred securities 'AA-'.

Fleet Capital Trust II, V, VIII, IX

-- Trust preferred securities 'AA-'.

MBNA Capital A, B, D, E

-- Trust preferred securities 'AA-'.

NB Capital Trust II, III, IV

-- Trust preferred securities 'AA-'.

Summit Capital Trust I

-- Trust preferred securities 'AA-'.

BankAmerica Corporation

-- Long-term senior debt 'AA'

-- Long-term subordinated debt 'AA-'

-- Preferred stock 'AA-'.

BankBoston Corporation

-- Subordinated debt 'AA-'.

Fleet National Bank

-- Subordinated debt 'AA-'.

FleetBoston Financial Corp

-- Senior long-term debt 'AA';

-- Subordinated debt 'AA-'.

MBNA Corp.

-- Long-term senior debt 'AA';

-- Long-term subordinated debt 'AA-';

-- Short-term debt 'F1+'.

NationsBank Corp

-- Long-term senior debt 'AA';

-- Long-term subordinated debt 'AA-'.

NationsBank, N.A.

-- Long-term senior debt 'AA'.

NCNB, Inc.

-- Long-term subordinated debt 'AA-'.

LaSalle Funding LLC

-- Senior notes at '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.