Standard&Poor's Ratings Services' ratings on Fifth Third Bancorp reflect an earnings platform that continues to demonstrate fundamental strength, solid deposit funding based on a strong market position as a major Midwest bank, and proven access to capital and wholesale funding in difficult markets. Somewhat offsetting these strengths are the bank's weak but stabilizing loan portfolio quality and exposure to troubled Midwest and Florida markets. Fifth Third's pretax, preprovision margins compare favorably with those of similarly rated peers, with good efficiency and revenue diversification. However, outsize provisions to cover significant asset quality deterioration in anticipation of credit losses embedded in its loan portfolio have recently outrun its fundamental earnings. Indeed, Fifth Third's pretax, preprovision margins are among the strongest
