Fitch Affirms Huntington Bancshares Ratings Following Announcement

    NEW YORK--June 27, 2003--Yesterday, Huntington Bancshares Incorporated (HBAN) announced that the Securities and Exchange Commission (SEC) has launched a formal investigation regarding its accounting practices for automobile leases.
    The SEC investigation also includes a review of allegations from a former employee regarding HBAN's accounting and financial reporting practices. This recent announcement follows the company's April 16, 2002 press release detailing the required change in accounting treatment on a portion of its automobile leases from the direct finance method to operating leases and subsequent restatement of prior period financial results. Ultimately, about two-thirds of the company's automobile leases were reclassified. Simply stated, a direct finance lease is treated in the financial statements as a loan whereas an operating lease portrays the transaction as if the company were a purchaser and renter of automobiles. Additionally, while the income and cash flows for both lease accounting treatments are the same, the timing of revenue recognition is different.
    As Fitch discussed in the U.S. Banking Quarterly for 1Q03, published in early May, HBAN had reported another sound quarter for 1Q03 that was overshadowed somewhat by the accounting restatement. While the company has also restated prior periods it is important to note that the changes are not that substantial, although re-classification has occurred on both the balance sheet and income statement.
    Fitch has affirmed all of HBAN's existing ratings along with the Stable Rating Outlook. While the SEC investigation is concerning, the company has had much review of its financial statements since the restatement was announced including external auditors who issued an unqualified opinion on the restated 2002 and 1Q03 financial results. However, a major unexpected finding from the investigation would be reason for Fitch to revise its outlook or ratings.

    Ratings Affirmed:

    Huntington Bancshares Incorporated

--	Long-term Senior, 'A';
--	Long-term Subordinated, 'A-';
--	Short-term Debt, 'F1';
--	Individual, 'B';
--	Support, '5';
--	Long-term Rating Outlook, Stable.

    Huntington National Bank

    -- Long-term Deposits, 'A+';

    -- Long-term Senior, 'A';

    -- Long-term Subordinated, 'A-';

    -- Short-term Deposits; 'F1';

    -- Short-term Debt, 'F1';

    -- Individual, 'B';

    -- Support, '4';

    -- Long-term Rating Outlook, Stable.