Fitch Downgrades BankUnited IDRs

The long-term Issuer Default Ratings of BankUnited Financial Corp., a mortgage lender based in Coral Gables, Fla., and its subsidiaries have been downgraded by Fitch Ratings. Fitch downgraded the parent company's IDR from BB-minus to CCC and the IDR of BankUnited FSB from BB to CCC. The rating agency noted that BankUnited recently agreed to a cease-and-desist order with the Office of Thrift Supervision, an action that "significantly weakens the liquidity profile of the holding company as the regulators restrict payments from the bank to the holding company," Fitch said. The C&D order requires, among other things, that the bank's Tier One capital ratio be maintained above 7% and that its loan loss reserve be increased. The order says BankUnited "has engaged in unsafe and unsound practices leading to a significant rise in delinquencies and defaults in its payment-option [adjustable-rate mortgage] portfolio," Fitch said.