Fitch Affirms FirstMerit IDRs at 'A-/F1'; Outlook Revised to Stable

Fitch has affirmed the ratings of FirstMerit Corporation (Nasdaq:FMER) and its principal subsidiary, FirstMerit Bank, N.A. Fitch has also revised the Outlook to Stable from the Negative Outlook assigned on Oct. 23, 2006. A list of ratings follows below.

Driven by new leadership, FMER has made some additional notable management changes, positive progress with its focus on improving asset quality and restructured business units. The company also identified strategic goals to reduce its risk profile and achieve consistent quality earnings. Completed initiatives included credit administration enhancements, a comprehensive commercial loan review and aligning management compensation with credit performance to enforce accountability. With major aspects of past credit deficiencies addressed, Fitch expects current credit trends to remain steady. At June 30, 2008, FMER's asset quality metrics were in line with similarly rated peers.

The rating affirmation is supported by the company's solid franchise within its footprint, strong tangible capital and liquidity position and diversified revenue stream. The Stable Outlook reflects Fitch's view that FMER will sustain stable earnings and credit costs through the credit cycle.

The following ratings were affirmed. The Rating Outlook is revised to Stable from Negative.

FirstMerit Corporation

--Long-term IDR at 'A-';

--Short-term IDR at 'F1';

--Individual, B;

--Support at '5';

--Support Floor at 'NF';

FirstMerit Bank, N.A.

--Long-term Deposits at 'A';

--Long-term IDR at 'A-';

--Short-term Deposits at 'F1';

--Short-term IDR at 'F1';

--Subordinated debt at 'BBB+'

--Individual at 'B';

--Support at '5';

--Support Floor at 'NF'.

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