S&P: Astoria unchanged

Standard & Poor's said it said there are no ratings implications for Astoria Financial Corp. (BBB/stable) in light of the company's disclosure that it will likely need to take an other-than-temporary impairment charge on its Freddie Mac preferred securities in third-quarter 2008.

As of June 30, Astoria owned Freddie Mac preferred stock with a book value of $83.7 million, the agency said, noting that it expects that the write-down will be a substantial portion of the securities' book value, given the elimination of dividends and sharp decline in market value for these securities.

Further, the agency said it expects that Astoria may post a small net loss during for the third quarter as a result of the write-down.

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