See:
"13.7.76 MIN (A1, A2 [, A3, ...])
For arguments of character type, the result is the value that would be selected
by application of intrinsic relational operators; that is, the collating
sequence for characters with the kind type parameter of the arguments is
applied. If the selected argument is shorter than the longest argument, the 20
result is extended with blanks on the right to the length of the longest
argument."

"Example. [...] MIN (”A”, ”YY”) has the value “A “, and
22 MIN ((/”Z”, ”A”/), (/”YY”, ”B “/)) has the value (/”YY”, ”A “/)."

Analogously for:
"13.7.71 MAX (A1, A2 [, A3, ...])"


-- 
           Summary: Fortran 2003: MIN and MAX with character variables
           Product: gcc
           Version: 4.3.0
            Status: UNCONFIRMED
          Severity: enhancement
          Priority: P3
         Component: fortran
        AssignedTo: unassigned at gcc dot gnu dot org
        ReportedBy: burnus at gcc dot gnu dot org


http://gcc.gnu.org/bugzilla/show_bug.cgi?id=29828

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