Moody's weighs downgrade for National City

Shares of the Cleveland-based bank fell $2.35, or 63.3 percent, to close at $1.36. A company spokeswoman said the stock decline was an irrational reaction to problems at other larger banks such as Wachovia and Washington Mutual.

Moody's said its review would focus on the company's exposure to real estate credit costs. The credit rating service said it is unclear when National City Bank will return to profitability, but also noted the bank raised significant capital in the first part of the year.

National City's senior debt is currently rated 'A3,' indicating it is subject to low credit risk. The company's financial strength is rated "C+," which is considered speculative-grade.