Moody's lowers Indymac

Moody's downgraded Indymac Bank FSB's long-term deposit rating to Ba1 from Baa3 and its short-term deposit rating to not prime from P-3.

Indymac Bancorp, Inc.'s issuer rating was downgraded to Ba2 from Ba1.

Moody's said that the downgrade reflects the significant deterioration in the quality of Indymac's loan portfolios and continuing concerns about franchise impairment.

"Higher provisioning, mortgage asset writedowns and a substantial decline in loan sales volume resulted in the company recording a significant loss [in the third quarter]," Moody's vice president Craig Emrick said in a written statement. "We believe these three factors could persist for multiple quarters resulting in additional losses for the company."

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