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To: Mkilloran who wrote (36122)	12/19/2001 12:26:15 PM
From: AV8R	Read Replies (1) of 53068

Another PVN downgrade - stock still going up - go figure! Following is a press release from Moody's Investors Service: New York, December 19, 2001 Moody's Investors Service today downgraded the longterm ratings of credit card issuer Providian Financial Corporation (Senior to B2 from Ba3) and its subsidiary Providian National Bank (Deposits to Ba2 from Ba1). Following this ratings action the company's ratings remain on review for possible downgrade. Moody's said that the downgrade and continued ratings review reflect the uncertainty regarding the timing of any restructuring initiatives and the implications on regulatory capital, as well as Providian's weaker earnings profile and funding challenges. The two notch downgrade of the parent holding company's debt reflects the rating agency's expectation that parent company double leverage will increase and holding company cash flows will be reduced as a result of the company's written agreements with its bank regulators entered into on November 21. The rating agency also noted that the bank continues to have access to the brokered deposit market, and has been able to successfully issue shortterm private securitizations to replace some of its maturing issues. The following ratings were downgraded: Providian Financial Corporation senior unsecured debt to B2 from Ba3. Providian Capital I preferred stock to Caa1 from B2. Providian National Bank longterm deposits to Ba2 from Ba1; senior bank notes and other senior longterm obligations to Ba3 from Ba2; issuer rating to Ba3 from Ba2; subordinated debt to B1 from Ba3. Providian National Bank's bank financial strength rating was confirmed at D. Providian Financial Corporation, headquartered in San Francisco, California, had total managed assets of $38.2 billion and equity of $2.4 billion as of September 30, 2001. (END) DOW JONES NEWS 121901 12:20 PM

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