Fitch downgrades Huntington

Fitch Ratings said it downgraded Huntington Bancshares Inc.'s long-term issuer default rating to A- from A, lowered its individual rating to B/C from B and affirmed its F1 short-term issuer default and 5 support ratings.

The agency also downgraded Huntington National Bank's senior unsecured debt rating to A- from A and subordinated debt rating to BBB+ from A- and Huntington Capital I-III's preferred stock to BBB+ from A-.

The ratings were placed on Rating Watch negative.

The rating actions follow Huntington's announcement that it will take a significant special provision of up to $300 million after-tax in the fourth quarter against a series of loans to Franklin Credit Management Co. Huntington had pre-tax earnings of $314 million for the first nine months of 2007.

The Rating Watch will be resolved as Fitch is able to conduct a more in-depth review of Huntington's plans to rebuild its capital position.

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