Comerica's Outlook Revised to Negative

Fitch Ratings has affirmed the ratings of Detroit-based Comerica Inc. and its subsidiaries but revised their rating outlook to negative in part due to problem loans tied to the residential housing market. While citing the company's "solid tangible capital base, sizable non-interest-bearing deposit base" and "sound risk management practices," Fitch said the negative outlook reflects "rising levels of nonperforming assets, weaker earnings, and deterioration in capital ratios." The outlook revision also takes into account the fact that the company could be hurt by the deteriorating economic environment. "Since the fourth quarter of 2007, problem loans have been increasing due to the downturn in the residential housing market," the rating agency said. "The deterioration in credit quality is largely emanating from [Comerica's] residential construction book, particularly in Michigan and California." Fitch can be found online at http://www.fitchratings.com.