Emigrant Bancorp Inc: –Long-term IDR downgraded to ‘B-’ from ‘BB+’ –Short-Term IDR affirmed at ‘B’ –Individual

Emigrant Bancorp Inc: –Long-term IDR downgraded to ‘B-’ from ‘BB+’; –Short-Term IDR affirmed at ‘B’; –Individual Rating downgraded to ‘D/E’ from ‘C/D’; –Senior Debt downgraded to ‘CCC/RR6′ from ‘BB+’; –Support affirmed at ‘5′; –Support Floor affirmed at ‘NF’. Today’s rating action reflects significant degradation of asset quality metricsover the last six months. Using the latest regulatory report filed with theFederal Reserve Bank, nonperforming assets (NPAs)represent 11.3% of loans andother real estate on March 31, 2009. Previously, delinquencies had been focusedon the residential loan book. Offsetting the high level of nonperforming assetsin this book are conservative loan-to-values, which negated any recognition oflosses upon disposition of the property.

While this still may be the case,evidenced by net charge-offs representing only 6 basis points on March 31, 2009,Fitch does not view this as sustainable. More concerning is the deterioration inEmigrant’s commercial book, which Fitch believes will likely lead to sharplyhigher charge-offs than historical experience This will place renewed pressureon the capital position. While the level of loan loss reserves on March 31, 2009has shown improvement, Fitch does not view the level of reserves and capital assufficient given the current level of NPAs. A lack of earnings generation duringthe first quarter and in 2008, largely from write-downs in its securities book,has made capital building efforts more difficult. Since Fitch’s last rating action in October 2008, Emigrant has taken severalsteps to augment its regulatory capital position Foremost, it sold $267 millionof preferred stock to the U.S. Treasury under its Capital Purchase Program.Consequently, regulatory capital ratios improved, albeit subsequent write-downsduring the first quarter have offset the magnitude of the benefit from thepreferred stock. The tangible common equity capital ratio still exhibits extremestress on capital, declining to 1.36% on March 31, 2009 from 2.32% on Dec 31,2008.

Recent investment sales during the second quarter have improved capitalratios from the March 31, 2009 level. Tangible capital reflects theunprecedented movement of market prices in the security portfolio, which isprimarily composed of securities issued by financial services companies.Regulatory capital ratios remain well capitalized as defined by capitalregulation standards. Parent company liquidity on March 31, 2009 totaled $210.7 million, of which$26.4 million is cash and the remainder is highly liquid government securities.While the current level of liquidity provides substantial coverage for debtservice on the preferred and other debt securities at the holding companies, therisk of regulatory authorities requiring capital augmentation at the regulatedbank subsidiaries is elevated, in Fitch’s opinion. Consequently, the level ofliquidity at the holding companies could be adversely affected. The Negative Outlook reflects Fitch’s concern about the level of capital and theability to support the high level of NPAs. The following Emigrant subsidiaries have also been affected by today’s ratingaction, and Fitch has taken the following actions: Emigrant Bank –Long-term IDR downgraded to ‘B’ from ‘BBB-’; –Long-term Deposits downgraded to ‘B+/RR2′ from ‘BBB’; –Short-Term IDR downgraded to ‘B’ from ‘F3′; –Short-Term Deposits downgraded to ‘B’ from ‘F3′; –Individual Rating downgraded to ‘D/E’ from ‘C’; –Support affirmed at ‘5′; –Support Floor affirmed at ‘NF’.

Emigrant Savings Bank – Manhattan –Long-term IDR downgraded to ‘B’ from ‘BBB-’; –Long-term Deposits downgraded to ‘B+/RR2′ from ‘BBB’; –Short-Term IDR downgraded to ‘B’ from ‘F3′; –Short-Term Deposits downgraded to ‘B’ from ‘F3′; –Individual Rating downgraded to ‘D/E’ from ‘C’; –Support affirmed at ‘5′; –Support Floor affirmed at ‘NF’. Emigrant Savings Bank – Brooklyn/Queens –Long-term IDR downgraded to ‘B’ from ‘BBB-’; –Long-term Deposits downgraded to ‘B+/RR2′ from ‘BBB’; –Short-Term IDR downgraded to ‘B’ from ‘F3′; –Short-Term Deposits downgraded to ‘B’ from ‘F3′; –Individual Rating downgraded to ‘D/E’ from ‘C’; –Support affirmed at ‘5′; –Support Floor affirmed at ‘NF’. Emigrant Savings Bank – Long Island –Long-term IDR downgraded to ‘B’ from ‘BBB-’; –Long-term Deposits downgraded to ‘B+/RR2′ from ‘BBB’; –Short-Term IDR downgraded to ‘B’ from ‘F3′; –Short-Term Deposits downgraded to ‘B’ from ‘F3′; –Individual Rating downgraded to ‘D/E’ from ‘C’; –Support affirmed at ‘5′; –Support Floor affirmed at ‘NF’. Emigrant Savings Bank – Bronx/Westchester –Long-term IDR downgraded to ‘B’ from ‘BBB-’; –Long-term Deposits downgraded to ‘B+/RR2′ from ‘BBB’; –Short-Term IDR downgraded to ‘B’ from ‘F3′; –Short-Term Deposits downgraded to ‘B’ from ‘F3′; –Individual Rating downgraded to ‘D/E’ from ‘C’; –Support affirmed at ‘5′; –Support Floor affirmed at ‘NF’. Emigrant Mercantile Bank –Long-term IDR downgraded to ‘B’ from ‘BBB-’; –Long-term Deposits downgraded to ‘B+/RR2′ from ‘BBB’; –Short-Term IDR downgraded to ‘B’ from ‘F3′; –Short-Term Deposits downgraded to ‘B’ from ‘F3′; –Individual Rating downgraded to ‘D/E’ from ‘C’; –Support affirmed at ‘5′; –Support Floor affirmed at ‘NF’. Emigrant Capital Trust I –Preferred Stock downgraded to ‘CC/RR6′ from ‘BB-’. Emigrant Capital Trust II –Preferred Stock downgraded to ‘CC/RR6′ from ‘BB-’.

Fitch’s rating definitions and the terms of use of such ratings are available onthe agency’s public site, Published ratings, criteria andmethodologies are available from this site, at all times. Fitch’s code ofconduct, confidentiality, conflicts of interest, affiliate firewall, complianceand other relevant policies and procedures are also available from the ‘Code ofConduct’ section of this site. Fitch Ratings, New YorkEric Newell, +1-212-908-0769Ken Ritz, +1-212-908-0366Media RelationsBrian Bertsch, +Copyright Business Wire 2009. OTTAWA, ONTARIO, Jun 19 (MARKET WIRE) — The Honourable Tony Clement, Minister of Industry and Ministerresponsible for the Standards Council of Canada (SCC), today announcedthe appointment of Mr Richard A. Raymond as a new member of the Councilfor a three-year term.”I am pleased to announce the appointment of Mr Raymond as a new memberof the SCC,” said Minister Clement. “His professional experience willcontribute to the continued success of the Council as it undertakes newand varied challenges.”Mr. Raymond has held several senior positions in municipal, provincialand national industry associations.