The ratings reflect Fifth Third Bancorp.'s strong position as a large regional bank. Despite its presence in the industrialized and slower growing Midwest, Fifth Third's aggregate asset quality remains a source of strength. The bank's finance assets are well diversified between commercial and consumer loans, and its consumer loans are largely secured by residential real estate. Although residential mortgage lending is typically a low-risk portfolio, a significant component of Fifth Third's residential mortgage portfolio is in the form of home equity lines of credit (HELOCs) and home equity loans, which carry somewhat higher loss expectancies than do first-lien mortgages. Yet, the bank's aggregate net charge-offs (NCOs) have remained within a narrow and moderate range for the past 10 years, providing
