Fitch Affirms Advanta Corp. at 'BB-'; Outlook Revised to Positive

Business Wire, Dec 8, 2006

NEW YORK -- Fitch ratings affirmed the long-term Issuer Default Rating (IDR) of Advanta Corp. and Advanta Bank Corp. at 'BB-'. The Rating Outlook is revised to Positive from Stable. A complete list of ratings affected by this action is detailed at the end of this release. Approximately $1.6 billion of debt and deposits is affected by this action. Advanta Corp. is listed on the NASDAQ under the tickers ADVNA and ADVNB.

The rating affirmation reflects the company's solid position in the small business credit card market, improved asset quality, consistent profitability metrics, and stable risk-adjusted capitalization, offset by growing competition in the small business credit card sector, and the risks associated with a lack of revenue diversity and its mono-line business focus.

The Rating Outlook reflects the company's improved credit quality metrics since it began focusing on a higher-quality customer base, operating consistency as it has increasingly leveraged the business model, and the easing of litigation risk with the settlement of the Chase lawsuit. Fitch believes that the continuation of solid asset quality and profitability metrics, combined with stable market share, could support rating momentum. Conversely, material deterioration in credit quality and risk-adjusted revenue margins could negatively impact the Rating Outlook.

Fitch affirmed and revised the Rating Outlook to Positive on the following:

Advanta Corp.

-- Long-term Issuer Default Rating (IDR) 'BB-';

-- Short-term 'B';

-- Senior unsecured 'BB-'.

Advanta Bank Corp.

-- Long-term IDR 'BB-';

-- Short-term 'B';

-- Long-term deposits 'BB'.

Advanta Capital Trust I

-- Trust preferred stock 'B'.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.