Fitch Revises Independent Bank Corp.'s Long-Term Outlook to Positive

NEW YORK--(BUSINESS WIRE)--Sept. 29, 2003--Fitch Ratings has revised its Rating Outlook to Positive from Stable for the ratings of Independent Bank Corp. (INDB) and its primary operating subsidiary Rockland Trust Company. All ratings for the Rockland, MA based INDB and Rockland Trust Company are affirmed. Additionally, Fitch Ratings is assigning 'BB' preferred stock ratings to INDB's two statutory business Trusts, Independent Capital Trust III and Independent Capital Trust IV. A complete roster of ratings for INDB and its subsidiaries are included below.

The revised Rating Outlook largely reflects the progress the company has made in enhancing its capital position through consistent and solid earnings generation and retention. The late 2000 acquisition of 16 former FleetBoston branches placed considerable pressure on INDB's tangible equity, which was reflected in the company's tangible equity ratio of 3.96% at YE2000. Currently, this measure stands at a more favorable 5.4%. Fitch's view of INDB's ratings incorporates the company's sound asset quality and reserve levels. Although INDB's loan portfolio does contain some relatively higher risk credits, particularly commercial real estate exposures and an indirect auto book, credit metrics have been consistently solid. Additionally, INDB's performance has been trending upward, yet, as with other banks, has evidenced some margin compression, due to the declining interest rate environment. Further contributing to the company's sound financial condition and solid performance, is the fact that INDB's footprint resides within the increasingly appealing demographic southeastern Massachusetts. Resolution of the Positive Outlook will depend on continued improvement in pure and tangible capital, buttressed by consistent levels of performance and asset quality.

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Independent Bank Corp.

-- Short-term 'B';

-- Long-term 'BB+';

-- Individual 'B/C';

-- Support '5';

-- Rating Outlook Positive.

Rockland Trust Company

-- Short-term 'B';

-- Short-term deposit 'F3';

-- Long-term 'BB+';

-- Long-term deposit 'BBB-';

-- Individual 'B/C';

-- Support '5';

-- Rating Outlook Positive.

Independent Capital Trust III

-- Preferred Stock 'BB'

Independent Capital Trust IV

-- Preferred Stock 'BB'