Fitch downgrades Citigroup

Fitch Ratings said it downgraded Citigroup Inc.'s long-term issuer default rating to AA- from AA, individual rating to B from A/B, senior unsecured rating to AA- from AA and subordinated/preferred rating to A+ from AA-, while affirming the short-term issuer default rating at F1+, support rating at 5 and support floor at no-floor.

Fitch also downgraded Citigroup Global Markets Holdings Inc.'s long-term issuer default rating to AA- from AA, senior unsecured rating to AA- from AA and subordinated debt rating to A+ from AA-, while affirming its short-term issuer default rating at F1+ and short-term debt at F1+.

Fitch also affirmed Citigroup Funding Inc.'s short-term issuer default rating at F1+ and short-term debt rating at F1+.

The outlook is negative.

The downgrade stems from a $5 billion after-tax loss recorded in first-quarter of 2008, as well as a challenging financial outlook, Fitch said.

High expected losses in the U.S. consumer portfolio reflect rising delinquencies, particularly in first mortgage and home equity loans, combined with depreciating home prices in many U.S. regions, the agency said.

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