<div id="subtitle">Shares of Marshall & Ilsley slip after Fitch places debt ratings on negative watch</div><div><p>Shares of banking company Marshall & Ilsley Corp. were down Wednesday, after Fitch Ratings put the banking holding company's debt ratings on negative watch citing elevated loan losses.</p><p>Shares of Marshall & Ilsley were down 17 cents, or nearly 3 percent, to $6.35.</p><p>The watch applied to the issuer default rating and debt ratings of Marshall & Ilsley and its subsidiary banks. The long- and short-term issuer default ratings at the company and its subsidiary banks are BBB+ and F2, respectively.</p><p>In a note to investors Tuesday, Fitch analyst John Mackery noted that Marshall & Ilsley has sold about $1.6 billion of problem loans since first quarter of 2008</p><p>He wrote that the company's challenges largely stem from its construction and land development portfolio, especially in hard hit Arizona.</p><p>Mackery wrote that Fitch is evaluating loan quality indicators to determine if Marshall & Ilsley has taken sufficient measures to stem the tide of new problem loans.</p><p>A downgrade is likely if Fitch finds that the company's asset quality isn't expected to stabilize soon, Mackery wrote.</p><p>He said ratings aren't expected to be downgraded below investment grade. The review should be complete before the end of the third quarter.</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=57930805&bid=informcom" /></div><div id="copyright"><div>

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