Fitch Downgrades Advanta's Long-Term IDR to 'RD'; Removes Watch Negative

NEW YORK--(Business Wire)--
Fitch Ratings has downgraded the long-term Issuer Default Rating (IDR) of
Advanta Corp. (Advanta) to 'Restricted Default' ('RD') due to the initiation of
a tender offer for all $100 million of its 8.99% trust preferred securities at
20% of face value. Fitch considers the transaction to be a coercive debt
exchange according to its 'Coercive Debt Exchange Criteria' (March 3, 2009). In
April 2009, Advanta elected to defer its semi-annual interest payments on the
trust preferred securities and Fitch believes that investors who do not
participate in the tender offer could face even worse recovery prospects in the
event of liquidation.

Fitch has downgraded the following:

Advanta Corp.

--Long-term IDR to 'RD' from 'C'.

Fitch also removed the rating from Rating Watch Negative.

The rating no longer carries a Rating Outlook or Watch.

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.

Fitch Ratings
Meghan Crowe, CFA, 212-908-9121
Sadia Afridi, 212-908-0327
Brian Bertsch, 212-908-0549 (Media Relations)
brian.bertsch@fitchratings.com

Copyright Business Wire 2009