Fitch affirms Huntington

Fitch Ratings said it removed the ratings of Huntington Bancshares Inc. from Rating Watch negative and affirmed them, including the A- issuer default rating, F1 short-term issuer default rating, B/C individual rating, BBB+ preferred stock rating , 5 support rating and No Floor support floor.

Also affirmed were Huntington National Bank's A- senior unsecured and BBB+ subordinated debt ratings, Sky Bank's BBB+ subordinated debt rating and the BBB+ preferred stock ratings of Huntington Capital I-III and Sky Financial Capital Trust I-IV.

The outlook is stable.

In November 2007, Fitch placed the ratings on Rating Watch primarily because of the decline in the company's capital position following a large $512.1 million provision announced in the fourth quarter related mainly to the company's exposure to troubled "scratch and dent" lender Franklin Credit Management Corp.

The agency said it affirmed the ratings because of Huntington's improved capital and financial position. Huntington has raised $569 million through the sale of preferred securities, has announced a 50% dividend cut, saving about $194 million annually, and plans no stock repurchase activity for the remainder of 2008. Huntington also completed an $882 million whole loan auto securitization deal, and the agency said the cash proceeds will enhance financial flexibility.

Fitch said it is also satisfied with the actions taken by Huntington to effectively manage the Franklin Credit relationship.

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