Fitch affirms Marshall & Ilsley

Fitch Ratings said it affirmed the A+ long-term issuer default ratings and F1+ short-term issuer ratings of Marshall & Ilsley Corp. and its subsidiary banks including M&I Marshall & Ilsley Bank following the announced plan to do a sponsored spinoff of data processing subsidiary Metavante Corp.

The outlook remains stable.

The agency said the spinoff affords Marshall & Ilsley and its shareholders the ability to realize the imbedded value of the data processing business, while positioning Metavante as a separate, publicly traded entity, and will alleviate pressures on Marshall & Ilsley's capital position that were apparent during the past few years as Metavante grew relatively rapidly through acquisitions.

The diversification provided by Metavante was significant and considered very positive, however, Fitch said the size of the business and its capital needs were becoming an increasing challenge to Marshall & Ilsley.

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