Fitch Lowers Wachovia Senior Rating to `AA-'.

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 31, 2000

Fitch has lowered its long-term ratings for Wachovia Corporation (WB) and units, including those of its principal subsidiary, Wachovia Bank N.A., while affirming the `F1+' short-term rating for both entities. Among the rating changes, Wachovia Bank's long deposit ratings has been lowered to `AA' from `AA+', with other senior obligations of the bank and the holding company lowered to `AA-' from `AA'. Wachovia's long-term rating has been assigned a Stable Rating Outlook, with the `A/B' individual rating for the bank and holding company unchanged. A complete list of rating revisions and affirmations is provided at the end of this release.

While our rating action responds to a perceived moderate increase in Wachovia's risk profile, revised ratings remain within an exclusive class of Fitch's financial institutions ratings hierarchy. Wachovia is still considered to be among the premier U.S. regional banking franchises, however, Fitch currently sees fewer factors differentiating the company's credit profile from that of other strong performers. A fairly traditional mix of businesses continues to produce solid returns, though recent performance volatility not previously exhibited at Wachovia is at least partly related to what we consider to be a modestly greater risk appetite, along with more aggressive financial management practices in recent years. The company's recently announced `performance project', focused mostly on cost initiatives, but also the continued re- allocation of resources towards growing asset and wealth management businesses, is expected to buffer Wachovia's results in a period when top line growth expectations for much industry have tempered.

Recent deterioration in the credit quality measures of Wachovia's corporate loan portfolio, largely related to syndicated borrowers, is considered to be more indicative of the oft predicted deterioration in an unsustainably strong credit environment and less a function of any detrimental change in the company's credit underwriting or related administration. Still reflecting a comparatively strong balance sheet that includes above peer group capitalization, Wachovia's credit profile is further supported by our positive impressions of one of the more conservative management teams in the industry.

The following ratings for Wachovia Corporation and units have been lowered:

Wachovia Corporation

-- Senior Debt, `AA-' lowered from, `AA',

-- Senior MTNs, `AA-' lowered from, `AA',

-- Subordinated, `A+' lowered from, `AA-`.

Wachovia Bank N.A.

-- Long-term Deposits, `AA' lowered from, `AA+',

-- Senior Debt, `AA-' lowered from, `AA',

-- Senior Bank Notes, `AA-' lowered from, `AA'.

Wachovia Capital Trust I

-- Trust Preferred, `A+' lowered from, `AA-'.

Wachovia Capital Trust II

-- Trust Preferred, `A+' lowered from, `AA-'.

Wachovia Capital Trust V

-- Trust Preferred, `A+' lowered from, `AA-'.

Central Fidelity Capital Trust I

-- Trust Preferred, `A+' lowered from, `AA-'.

The following ratings for Wachovia Corporation and units have been affirmed:

Wachovia Corporation

-- Short-term, `F1+',

-- Commercial Paper, `F1+'.

Wachovia Bank N.A.

-- Short-term,`F1+',

-- Short-term Deposits,`F1+'.

Fitch is an international rating agency that provides global capital market investors with the highest quality ratings and research. Dual headquartered in New York and London with a major office in Chicago, Fitch rates entities in 75 countries and has some 1,100 employees in more than 40 local offices worldwide. The agency, which is a combination of Fitch IBCA and Duff & Phelps Credit Rating Co., provides ratings for Financial Institutions, Insurance, Corporates, Structured Finance, Sovereigns and Public Finance markets worldwide.