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Business Services Industry

Fitch Affirms & Removes from Watch Negative Royal Bank of Canada, RBC Centura Still on Watch Negative

Business Wire, July 18, 2005

NEW YORK -- Fitch has affirmed the rating and removed the Negative Rating Watch on Royal Bank of Canada (rated 'AA', 'F1+', and 'A/B' by Fitch). The long-term, short-term, and individual ratings of RBC Centura Banks, Inc. (rated 'AA-', 'F1+', and 'B' by Fitch) and its subsidiaries remain on Rating Watch Negative. The Rating Watch Negative was placed on both entities in September 2004 following a senior management reshuffle and a restructuring charge, as well as continued difficulties and missteps in the company's U.S. operation. Since that time, Royal Bank of Canada has improved its overall financial performance despite the continued lackluster although improving results from their U.S. operation. The continuation of the Negative Rating Watch for RBC Centura reflects the additional work the company still needs to do to achieve adequate returns from its U.S. operation.

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The Negative Rating Watch will be resolved following the continued review of RBC Centura's strategy to improve their financial performance.

The following ratings are affirmed and removed from Rating Watch Negative by Fitch:

Royal Bank of Canada

-- Senior unsecured rating at 'AA';

-- Subordinated debt at 'AA-';

-- Short-term rating at 'F1+';

-- Individual rating at 'A/B';

-- Support at '1';

-- Stable Rating Outlook.

The following ratings remain on Negative Rating Watch:

RBC Centura Banks, Inc.

-- Senior unsecured rating 'AA-';

-- Short-term rating 'F1+';

-- Individual rating 'B';

-- Support '1'.

RBC Centura Bank

-- Senior unsecured rating 'AA-';

-- Long-term deposits 'AA-';

-- Short-term deposits 'F1+';

-- Short-term rating 'F1+';

-- Individual rating 'B';

-- Support '1'.

RBC Capital Trust I

-- Trust-preferred securities 'A+'.

Fitch's rating definitions are available on the agency's public web site, www.fitchratings.com. Published ratings, criteria and methodologies, and relevant policies and procedures are also available from this site, at all times. This document will remain on the public site for seven days.

Business Services Industry

Fitch Affirms & Removes from Watch Negative Royal Bank of Canada, RBC Centura Still on Watch Negative

Business Wire, July 18, 2005

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