On Dec. 3, 2004, Standard&Poor's Ratings Services placed its ratings on Fifth Third Bancorp, including its 'AA-' long-term counterparty rating, on CreditWatch with negative implications. The ratings on the bank subsidiaries are not on CreditWatch, and maintain a stable outlook. The CreditWatch placement follows the company's announcement of a balance-sheet restructuring intended to reduce interest rate risk and better position Fifth Third for future earnings growth. The balance-sheet restructuring should expand net interest margins and boost ROA, but the CreditWatch reflects a longer-term increase in balance-sheet leverage compounded by the additional leveraging effect of Fifth Third's upcoming acquisition of $5.3 billion First National Bankshares of Florida Inc. and the overhang of an existing stock buyback program. Although the
