Fitch downgrades Indymac

Fitch Ratings said it downgraded the long-term issuer default rating of Indymac Bancorp Inc. to B- from BB, short-term issuer default rating to C from B and individual rating to D/E from C/D.

The agency downgraded Indymac Bank FSB's long-term issuer default rating to B from BB, short-term issuer default rating to C from B, long-term deposits to B/RR4 from BB+, individual rating to D from C/D, short-term deposits to C from B and preferred stock to CCC-/RR6 from B+.

Ratings were placed on Rating Watch negative.

The downgrades reflect the company's challenges in returning to profitability and decision to defer dividend payments on preferred stock, Fitch said.

The downgrade also reflects the cumulative effect of several quarters of operating losses on the bank's capital position, the agency noted.

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