S&P ups IndyMac Bancorp to positive

Standard & Poor's said it changed its outlook on IndyMac Bancorp and its subsidiary bank IndyMac Bank FSB to positive from stable.

All ratings also were affirmed, including IndyMac Bancorp's counterparty credit rating at BB+ and IndyMac Bank FSB's counterparty credit rating at BBB-.

The outlook change reflects meaningful structural improvements in the company's business profile during the past several years, most notably from the establishment of a deposit franchise and the stabilization of the business strategy and structure, S&P said.

The ratings on IndyMac reflect its fairly low credit risk, adequate capitalization and earnings that are strong but heavily dependent on transactional revenues in the very cyclical housing finance market. The stabilization of the business model on a thrift platform has improved the funding profile, although it remains reliant on wholesale funding and securitizations to fund origination growth, S&P said.

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