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arkygirl
Down the tubes with the whole bunch! Fitch historically has been late to the party so for them to do this is an ominous sign.

http://www.businesswire.com/news/home/20101022005938/en/Fitch-Places-Bank-Americas-IDRs-Rating-Watch

                                                                                                                                                               

Fitch Places Bank of America's IDRs on Rating Watch Negative

                                                                                                                               
                                                               
                                                                                                                                                               

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has placed the long-term and short-term Issuer Default Ratings (IDRs) as well as the Support and Support Floor ratings of Bank of America Corporation (BAC) on Rating Watch Negative following initial interpretation of the Dodd-Frank Wall Street Reform and Consumer Protection Act and its implications for systemically important financial institutions.

Please refer to Fitch's press release dated Oct. 22, 2010, titled 'Fitch: U.S. FI Ratings Potentially Impacted by Proposed FDIC Rules' for additional information. Fitch's ratings of banks have always encompassed a view of intrinsic creditworthiness expressed through the Individual rating, while Fitch's view of Support has been expressed separately through its Support framework. Support Ratings communicate Fitch's judgment on whether a bank would receive support from the U.S. Government should this become necessary. The recently enacted legislative framework and potential regulatory rulemaking primarily affect Fitch's sovereign Support framework.

At the present time, Fitch's current long-term 'A+' IDR rating for BAC incorporates a three-notch uplift for the long-term rating and a two-notch uplift for the 'F1+' short-term ratings. If Fitch determines on a going forward basis that support from the sovereign state can no longer be relied upon it is not certain that Fitch would immediately lower the IDRs of BAC to its unsupported rating level. Over the near-to-intermediate term, Fitch's fundamental credit assessment of BAC will continue to consider existing support already received, such as debt still outstanding issued under the Federal Deposit Insurance Corp. (FDIC's) Temporary Liquidity Guaranty Program (TLGP), in its ratings. As a result, IDRs will continue to incorporate support received during the crisis, as well as recent improvements in BAC's intrinsic financial profile and Fitch's expectations for continued improvement.

Fitch has maintained a '1' Support Rating on BAC, translating into a Support Rating Floor of 'A+', since the depths of the recent financial crisis. Fitch's rating criteria calls for the assignment of the 'higher-of' BAC's Support Rating Floor of 'A+' or its perceived fundamental stand-alone IDR rating (excluding support), which is currently 'BBB+/F2'. Since Fitch is placing on Rating Watch Negative all U.S. bank and bank holding companies' Support Ratings and Support Rating Floors, the IDRs of BAC and its sovereign support dependent ratings are also placed on Rating Watch Negative.

The stand-alone IDRs are driven by the Individual rating which is currently 'C'. In August 2010, Fitch upgraded BAC's Individual rating from 'C/D' reflecting efforts to boost common equity and liquidity combined with stable to improving asset quality trends in various portfolio categories. The upgrades were constrained by BAC's remaining challenges including a still high level of non-performing loans (NPLs), large reps and warranty exposure in the mortgage business as well as ongoing legal issues associated with the Merrill Lynch and Countrywide acquisitions. Further upgrades of the Individual rating and the unsupported IDRs are a possibility if operating earnings stabilize and/or increase, asset quality trends continue to improve, greater clarity emerges on ultimate reps and warranty exposure in the mortgage business and legal risks diminish. The Individual rating could be negatively affected if asset quality again deteriorates, which is not expected at least in the near term. Downward rating pressure could emerge if reps and warranties losses escalate appreciably, particularly in cost result in operating losses and erosion of capital.

BAC is one of the largest U.S. banks in terms of total deposits, loans, branches, mortgage originations/servicing and credit card issuance. Following its January 2009 merger with Merrill Lynch & Co., Inc. (Merrill), BAC became one of the top financial institutions in wealth management and investment banking.

Fitch has taken the following rating actions:

Bank of America Corporation

--Long-term IDR 'A+' placed on Rating Watch Negative;

--Long-term senior debt 'A+' placed on Rating Watch Negative;

--Long-term subordinated debt 'A' placed on Rating Watch Negative;

--Preferred stock remains 'BBB-'

--Short-term IDR 'F1+' placed on Rating Watch Negative;

--Short-term debt 'F1+' placed on Rating Watch Negative;

--Individual remains 'C';

--Support '1' placed on Rating Watch Negative;

--Support Floor 'A+' placed on Rating Watch Negative;

--Long-term debt guaranteed by TLGP remains 'AAA';

--Short-term debt guaranteed by TLGP remains 'F1+'.

Bank of America N.A.

--Long-term deposits 'AA-' placed on Rating Watch Negative;

--Long-term IDR 'A+' placed on Rating Watch Negative;

--Long-term senior debt 'A+' placed on Rating Watch Negative;

--Long-term subordinated debt 'A' placed on Rating Watch Negative;

--Short-term IDR 'F1+' placed on Rating Watch Negative;

--Short-term debt 'F1+' placed on Rating Watch Negative;

--Short-term deposits 'F1+' placed on Rating Watch Negative;

--Individual remains 'C';

--Support '1' placed on Rating Watch Negative;

--Support Floor 'A+' placed on Rating Watch Negative;

--Long-term debt guaranteed by TLGP remains 'AAA';

--Short-term debt guaranteed by TLGP remains 'F1+'.

Bank of America Georgia, N.A.

Bank of America Oregon, National Association

Bank of America California, National Association

--Long-term IDR 'A+' placed on Rating Watch Negative;

--Short-term IDR 'F1+' placed on Rating Watch Negative;

--Individual remains 'C';

--Support '1' placed on Rating Watch Negative;

--Support Floor 'A+' placed on Rating Watch Negative.

Bank of America Rhode Island, National Association

--Long-term IDR 'A+' placed on Rating Watch Negative;

--Short-term IDR 'F1+' placed on Rating Watch Negative;

--Long-term deposits 'AA-' placed on Rating Watch Negative;

--Short-term deposits 'F1+' placed on Rating Watch Negative;

--Individual remains 'C';

--Support '1' placed on Rating Watch Negative;

--Support Floor 'A+' placed on Rating Watch Negative.

FIA Card Services N.A.

--Long-term IDR 'A+' placed on Rating Watch Negative;

--Short-term IDR 'F1+' placed on Rating Watch Negative;

--Long-term deposits 'AA-' placed on Rating Watch Negative;

--Short-term deposits 'F1+' placed on Rating Watch Negative;

--Short-term debt 'F1+' placed on Rating Watch Negative;

--Long-term senior debt 'A+' placed on Rating Watch Negative;

--Long-term subordinated debt 'A' placed on Rating Watch Negative;

--Individual remains 'C';

--Support '1' placed on Rating Watch Negative;

--Support Floor 'A+' placed on Rating Watch Negative.

LaSalle Bank Corporation

--Long-term IDR 'A+' placed on Rating Watch Negative;

--Short-term IDR 'F1+' placed on Rating Watch Negative;

--Individual remains 'C';

--Support '1' placed on Rating Watch Negative;

--Support Floor 'A+' placed on Rating Watch Negative.

Merrill Lynch & Co., Inc.

--Long-term IDR 'A+' placed on Rating Watch Negative;

--Long-term senior debt 'A+' placed on Rating Watch Negative;

--Long-term subordinated debt 'A' placed on Rating Watch Negative;

--Preferred stock remains 'BBB-';

--Short-term IDR 'F1+' placed on Rating Watch Negative;

--Short-term debt 'F1+' placed on Rating Watch Negative;

--Individual remains 'C';

--Support '1' placed on Rating Watch Negative;

--Support Floor 'A+' placed on Rating Watch Negative.

Banc of America Securities Limited

--Long-term IDR 'A+' placed on Rating Watch Negative;

--Short-term IDR 'F1+' placed on Rating Watch Negative.

Banc of America Securities LLC

--Long-term IDR 'A+' placed on Rating Watch Negative;

--Short-term IDR 'F1+' placed on Rating Watch Negative.

B of A Issuance B.V.

--Long-term IDR 'A+' placed on Rating Watch Negative;

--Long-term senior debt 'A+' placed on Rating Watch Negative;

--Long-term subordinated debt 'A' placed on Rating Watch Negative;

--Support remains '1'.

LaSalle Bank N.A.

LaSalle Bank Midwest N.A.

United States Trust Company N.A.

Countrywide Bank FSB

--Long-term deposits 'AA-' placed on Rating Watch Negative;

--Short-term deposits 'F1+' placed on Rating Watch Negative.

MBNA Canada Bank

--Long-term IDR 'A+' placed on Rating Watch Negative;

--Long-term senior debt 'A+' placed on Rating Watch Negative;

--Long-term subordinated debt 'A' placed on Rating Watch Negative;

--Short-term IDR 'F1+' placed on Rating Watch Negative.

MBNA Europe Bank Ltd.

--Long-term IDR`A+' placed on Rating Watch Negative;

--Long-term senior debt 'A+' placed on Rating Watch Negative;

--Long-term subordinated debt 'A' placed on Rating Watch Negative;

--Short-term IDR 'F1+' placed on Rating Watch Negative;

--Individual remains 'C/D' and on Rating Watch Positive;

--Support remains '1'.

Merrill Lynch International Bank Ltd.

--Long-term IDR 'A+' placed on Rating Watch Negative;

--Short-term IDR 'F1+' placed on Rating Watch Negative;

--Individual remains 'C/D' and on Rating Watch Positive;

--Support remains '1'.

Merrill Lynch S.A.

--Long-term IDR 'A+' placed on Rating Watch Negative;

--Long-term senior debt 'A+' placed on Rating Watch Negative;

--Support remains '1'.

Merrill Lynch & Co., Canada Ltd.

--Short-term IDR 'F1+' placed on Rating Watch Negative;

--Short-term debt 'F1+' placed on Rating Watch Negative.

Merrill Lynch Canada Finance

--Long-term IDR 'A+' placed on Rating Watch Negative;

--Long-term senior debt 'A+' placed on Rating Watch Negative;

--Short-term IDR 'F1+' placed on Rating Watch Negative;

--Individual remains 'C';

--Support remains '1'.

Merrill Lynch Japan Finance Co., Ltd.

--Long-term IDR 'A+' placed on Rating Watch Negative;

--Long-term senior debt `A+' placed on Rating Watch Negative;

--Short-term IDR 'F1+' placed on Rating Watch Negative;

--Short-term debt 'F1+' placed on Rating Watch Negative;

--Support remains '1'.

Merrill Lynch Japan Securities Co., Ltd.

--Long-term IDR 'A+' placed on Rating Watch Negative;

--Short-term IDR 'F1+' placed on Rating Watch Negative;

--Support remains '1'.

Merrill Lynch Finance (Australia) Pty LTD

--Short-term IDR 'F1+' placed on Rating Watch Negative;

--Commercial Paper 'F1+' placed on Rating Watch Negative.

BankAmerica Corporation

--Long-term senior debt 'A+' placed on Rating Watch Negative;

--Long-term subordinated debt 'A' placed on Rating Watch Negative.

Countrywide Financial Corp.

--Long-term senior debt 'A+' placed on Rating Watch Negative;

--Long-term subordinated debt 'A' placed on Rating Watch Negative.

Countrywide Home Loans, Inc.

--Long-term senior debt 'A+' placed on Rating Watch Negative.

FleetBoston Financial Corp

--Long-term subordinated debt 'A' placed on Rating Watch Negative.

LaSalle Funding LLC

--Long-term senior debt 'A+' placed on Rating Watch Negative.

MBNA Corp.

--Long-term senior debt 'A+' placed on Rating Watch Negative;

--Long-term subordinated debt 'A' placed on Rating Watch Negative;

--Short-term debt 'F1+' placed on Rating Watch Negative.

NationsBank Corp

--Long-term senior debt 'A+' placed on Rating Watch Negative;

--Long-term subordinated debt 'A' placed on Rating Watch Negative.

NationsBank, N.A.

--Long-term senior debt 'A+' placed on Rating Watch Negative.

NCNB, Inc.

--Long-term subordinated debt `A' placed on Rating Watch Negative.

BAC Capital Trust I - VIII

BAC Capital Trust X - XV

--Trust preferred securities remain 'BBB-'.

BAC AAH Capital Funding LLC I - VII

BAC AAH Capital Funding LLC IX - XIII

BAC LB Capital Funding Trust I - II

--Trust preferred securities remain 'BBB-'.

BankAmerica Capital II, III

BankAmerica Institutional Capital A, B

BankBoston Capital Trust III-IV

Barnett Capital Trust III

Countrywide Capital III, IV, V

Fleet Capital Trust II, V, VIII, IX

MBNA Capital A, B, D, E

NB Capital Trust II, III, IV

--Trust preferred securities remain 'BBB-'.

Merrill Lynch Preferred Capital Trust III, IV, and V

Merrill Lynch Capital Trust I, II and III

--Trust preferred securities remain 'BBB-'.

Additional information is available at http://www.fitchratings.com

Applicable Criteria and Related Research:

--'Global Financial Institutions Rating Criteria' (Aug. 16, 2010);

--'Bank Holding Companies' (Dec. 30, 2009).

Applicable Criteria and Related Research:

Bank Holding Companies

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=493324

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547685

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE http://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.

                                                                       
                                                                                                                                                                                                                                                                                                                                               
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