2008-04-12 11:52:39 -

- Fitch has affirmed ratings for The Bank of Guam, based in Hagatna, Guam as follows:.

--Long Term Issuer Default Rating (IDR) 'BBB';

--Long term deposits 'BBB+'.

--Short Term IDR 'F2';

--Short term deposits 'F2';

--Individual 'C';

--Support '4';

--Support Floor 'B';

The Rating Outlook is Stable.

Bank of Guam continued

to exhibit solid results in 2007. The bank benefited from strong deposit growth and lower credit costs, prompted by continued, significant improvement in asset quality. Non-performing assets have declined nicely over several years, dropping 35% in 2007 while net charge-off levels were halved versus the prior year. Bank of Guam remains asset sensitive and typically experiences a moderate degree of margin compression when interest rates decline. In 2007, the net interest margin contracted modestly as short term interest rates declined in the second half of the year. With continued reductions in rates, the NIM will likely experience further compression in 2008. Further, Bank of Guam's revenue mix remains heavily dependent on spread income. Capital levels remain strong and provide Bank of Guam significant financial flexibility.

Guam's economy has shown continual improvement for several years, although fiscal challenges are still evident. To add a dimension of diversity, the bank continues to buy loan participations in select commercial real estate projects.

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, New York
Sharon Haas, 212-908-0362
Ken Ritz, 212-908-0368
or
Media Relations:
Kenneth Reed, 212-908-0540