Fitch corrects: Doral on negative watch

Fitch Ratings said its ratings on Doral Financial Corp. and its subsidiaries remain on Rating Watch negative, rather than being "affirmed" as Fitch announced a day earlier.

Ratings on Rating Watch negative include Doral Financial Corp.'s long-term issuer and senior unsecured ratings at BB+, short-term issuer and short-term notes at B, individual at C/D and preferred stock at BB-.

Fitch is responding to Doral's announcement that its executive management team has undergone significant change. Through a combination of resignations and terminations made public last Friday, Doral has replaced its chief executive officer, chief financial officer, and treasurer, as well as its director emeritus.

The changes in management were implemented in response to the findings of a report by Latham & Watkins LLP. Latham & Watkins was hired in early 2005 as an independent counsel for Doral's outside directors as part of the corrective action process to resolve the issues raised by the need of Doral to restate its financial statements.

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