Fitch Assigns Ratings to Merrill Merchant Bank

Business Wire, Sept 10, 2007

NEW YORK -- Fitch assigned ratings to Merrill Merchant Bank (Merrill), reflecting the ownership of Chittenden Corporation (CHZ). Fitch placed CHZ's ratings on Rating Watch Negative on June 27, 2007, upon the announcement of CHZ's acquisition by Peoples United Financial, Inc. ('BBB', Positive Outlook). Fitch believes the ratings of the combined People's and Chittenden franchise will likely be rated below CHZ's current 'A-' rating, given People's larger relative size.

CHZ is a multi-bank holding company headquartered in Vermont, with operations in Maine, Massachusetts, New Hampshire and Connecticut. The ratings of CHZ and its subsidiaries are derived from its strong New England franchise, conservative management, strong asset quality and solid liquidity and capital levels. In June 2007, People's announced it had reached a definitive agreement to purchase CHZ in a deal valued at approximately $1.9 billion. The purchase is dependent upon normal regulatory and shareholder approvals and is expected to close during 1Q08.

Fitch has assigned the following ratings:

Merrill Merchant Bank

--Long Term Issuer Default (IDR) 'A-';

--Long Term Deposits 'A';

--Short Term IDR 'F2';

--Short Term Deposits 'F1';

--Individual 'B';

--Support '5';

--Rating Floor 'NF'.

The ratings are on Rating Watch Negative.

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.